Even though the interest rates have reached the lowest levels for almost fifty years, a larger portion of Australians are finding it more difficult to maintain their financial stability. Many are currently in one form of financial trouble or another. This is the question on the mind of many: Why?
Organisations such as the Insolvency and Trustee Services of Australia (ITSA) and Fujitsu Consulting have revealed some troubling facts. The former has reported that the numbers of personal bankruptcies and instances of debt management arrangements is increasing. The latter has reported that over 630,000 Australian households are currently dealing with some type of mortgage stress.
Reasons For the Strain
In most cases, mortgage stress may be brought on by factors like mismanagement of household debt, unemployment, increases in the interest rates, unexpected expenses, and illness. These causes may vary in length or intensity so the effects will be different for individual homeowners.
If you are enduring such circumstances and you realise you may not be able to pay your mortgage or meet your other obligations, things may seem overwhelming. Of course, there are some steps you can take to reduce the stress of your mortgage and maintain some control over your finances too.
Below you will find five-step plan that may give you the room you need to reevaluate your position and get yourself out of trouble financially. Read each one carefully.
1. Keep calm and do something - The stress and strains that come along with serious financial problems is well known. Its impact on your family and other relationships can be devastating if not controlled. If you’ve been experiencing this already then you know that it can be a very emotion time, with anger, frustration, despair, and panic common.
Letting all of these feelings go unchecked often make the situation much worse than it could have been. This is why it is so important to keep your cool. You will be able to think more clearly and increase the odds that you will find solutions to the problems by making careful decisions.
2. Organise a budget if you haven’t already - This is the only legitimate way to keep all of your monthly finances in decent order. Budgets get all of those expenses down in a form that you can see and control. They help you determine whether you can meet your various obligations in terms of debt repayments and also show you how you tend to spend your money.
3. Communicate with your lender - If you know you are going to have a problem paying on your mortgage, you need to contact the lender immediately. The faster you let them know what is going on the more likely it is they can assist you. You should make the first move to show them you are actively trying to do something about the issue. Consulting with the lender may yield some options you didn’t realise you had.
4. Get a plan in motion - Once you’ve talked to the lender and made an arrangement to get payments back on track you need to maintain open communication and do what it takes to pay the mortgage on time.
5. Get additional help - If you are still struggling with the payments on your mortgage and other finances you may need to talk to someone else. Financial counselors are great options since they have the expertise and experience to evaluate your situation effectively. They can help you find other solutions and also provide ongoing support as you resolve your financial difficulties.Back « ANZ, NAB and the Home Loan War
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