Programs listed in this article are specific to Australia and are to act as a guide to the types of financial services that may be available to you if you live outside of Australia. For more general advice on debt, visit http://lowincomeloansaustralia.com.au/help-with-debt/
Many people throughout Australia are struggling with overwhelming debt that feels impossible to overcome. If this sounds like your current situation, it is important to know that there is help available. You may not be able to pull yourself out of debt overnight, but with careful planning and a debt reduction strategy, over time you can reduce your debt and have the financial freedom you want. It is important that you take advantage of all the financial resources that are available to you. Below is some place you can turn to for help with your debt.
If you are having trouble making ends meet each month, you should contact the Centrelink office nearest your location. This governmental agency is operated through the Department of Human Services. It offers low-income families with financial support to help cover some of their household expenses, such as rent, utilities, and childcare expenses. If you qualify for any of these special benefits, it will put more money into your pocket to help bring down you current debt level.
In addition to governmental benefits, you may also be eligible for a no or low-interest loan to help cover some of your current expenses. This, too, will put more money into your pocket and make it easier for you to budget all of your expenses. Below is a look at the two main loans offered to low-income families.
- NILS (No-Interest Loan Scheme). If you qualify this loan, it will provide between $300 and $1,200 that can be repaid over the course of 12 to 18 months. There are no services fees or interest associated with this loan.
- StepUp Loan. This loan offers between $800 and $3,000 in funds to eligible applicants. You will have up to three years to repay this loan. There are no service fees associated with this loan, but you will be charged a low interest rate.
The best way to deal with your current debt, is to seek the advice from a financial counsellor. These counsellors have the experience and training necessary to help you deal with your debt effectively. He/she can help you create a household budget and develop a customized debt reduction plan that works for you. The counsellor can also speak to your current creditors or other entities you owe money to and work out a payment arrangement that matches your budget. He/she will also make sure that you are receiving all the benefits you deserve and determine if you qualify for any hardship relief from some of your creditors.
Online Financial Support
If you want to evaluate your current debt level and receive tips for dealing with this debt, you can use the online Self Help debt assessment tool through Financial Counselling Australia. This assessment tool will take you through a series of questions about your current debt level and then provide you with practical tips to help resolve your debt issues. This agency also offers financial counselling services.
Dealing with overwhelming debt can be very stressful, which is why it is so important to reach out for assistance and to make sure you utilize all of your available resources. Remember that your debt did not just occur overnight, so it will take some time to eliminate all of it. However, with assistance and a strong commitment to making the necessary changes, you can successful eliminate your debt and learn strategies for avoiding debt in the future.