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How Does One Deal With Debt First?

Well to answer this, we need to look at the debt itself. If you owe family, it is a heartfelt obligation to accept that you owe it to them and that if you can't pay them straight away, you need to deal with it straight away. So that they can be assured that you are trustworthy. This also places your mind at rest. You then know you are not afraid to  talk to them. Before you do this you have to work out what you will be repaying them.

 You have to keep them in the picture with your circumstances. You have to work out what you want to offer to pay,if you can offer any money.

 Example 1: 
Let's say you owe your mother $200 as she help you when you were looking for work for you to purchase a laptop, where you had saved the balance of money. Now the laptop would have helped you to prepare , issue and print a resume. As soon as you are loan that money, you need to negotiate a repayment based on your living means.

 Very simple, if you are on Centre link Income of around $400 per fortnight - board $50.00 per week, clothes and entertainment $100 per fortnight, food $100 per fortnight and  you are left with $100 per fortnight. Then you have an unpaid speeding fine of $100 - do not offer what you cannot afford to pay. You are just penalising yourself. If you offered $10.00 per fortnight (for example) to both State Debt Recovery and your mother each - that allows you $80.00 emergency money to live on. This $10.00 per fortnight may be a small offer but is is a start to repay your debts. Never think that with this example it won't get paid based on this scenario. There is 99% chance you will make it.

 I have always said to customers, 'Only pay the minimum you need to pay, don't go over your means of living'. Now if you can not meet minimum repayments of even $5.00 per month, then you have to look at other avenues - claiming hardship on payment and/or seeking financial assistance from a financial adviser. We will cover this in other future posts.

 So now, we will assume you have worked out a repayment plan for yourself - in you have then  work out your expenses - refer to next post. The next step is all about talking.....
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