Australian Mortgage Stress Help

As economic issues continue to worsen both globally and domestically, the amount of financial stress on everyday Australians continues to grow. There are literally tens of thousands of Australians feeling the pinch and falling further into debt and behind on mortgage repayments. In these tough and uncertain times many Australians are uncertain where to look for relief.

Often time’s financial solutions are impractical or out of reach for the average Aussie. Being able to qualify for a main stream debt consolidation loan or favourable refinance terms can be difficult. With mounting financial pressures and limited financial opportunities, what can the average family do to improve their living conditions?

Below is a list of realistic and practical ideas as there are no miracle solutions. The information provided is strictly opinion and does not constitute as financial advice. You should consult with a certified financial planner for advice specific to your needs.

The ideas provided are to try and help free up cash to be able to service mortgage repayments and bills in general.

 
Budgeting – This generally pops up as the first recommendation of most financial help related articles. It’s 100% relevant and should be taken seriously, you’d be surprised on how many people don’t have a clear, accurate picture of their finances. Until you can clearly account for every penny coming in and going out, you can’t make informed decisions on how to manage your finances.

Downsizing – Depending on your stage in life or specific circumstance, downsizing certain aspects of your life may be appropriate. This can be across multiple items including your home, vehicles, entertainment, shopping, etc… One does not have to necessarily give up a certain lifestyle, its more about eliminating wastage to maintain a lifestyle or get ahead.

Refinancing – This option and downsizing may not be feasible for all but are still worth noting. To be able to refinance your home, you must fulfill multiple criteria. In order to get favourable terms you will need the following as a minimum; a good credit rating, equity in the home, a good debt to income ratio, a strong work history, up to date tax returns and possibly more. If you fulfill these criteria, getting a prime loan should be obtainable. If you are lacking in any of the mentioned areas, you may find the terms of your loan to be unfavourable or not qualify at all.

Debt Agreement – Many Australians are unaware of a debt agreement as a debt solution. A debt agreement is essentially a legally binding agreement between a debtor (you) and their creditors. A debt agreement is a flexible alternative to bankruptcy. If you have a large amount of unsecured debt, this may be an option to help drastically reduce this debt, freeing up cash for essential asset repayments like your home or vehicle. Learn more about debt agreements here.

Bankruptcy – Around the world people fear and hate the term bankruptcy. It is a term or act that is synonymous with failure. Regardless how it has received this distinction, in many cases it’s unreasonable. There are numerous reasons why one might file for bankruptcy, all of which are not subject to or related to failure. Many times actions which drive an individual or business to bankruptcy can be out of their hands; such as a divorce, accident, job loss, illness or global/domestic financial collapse. Depending on the severity of your financial circumstances, bankruptcy may be a suitable option.