Today in the news, former economics advisor John Adams proposed that Australia is too late to stop an ‘economic apocalypse’ regardless of his repeated warnings to the political elites in Canberra. He continued to urge the Reserve Bank to raise interest rates to stop household debt getting further out of hand.

This bubble is easy to explain. Confidence! It’s the fallacious perception that Australia’s last twenty years of continued economic growth will never encounter any type of correction is most distressing. Australia survived the GFC and a mining boom and bust. In the meantime, Melbourne and Sydney house prices have not missed a beat or taken a backward step. Sadly, the decision makers and powerful elite in Australia are from these two cities, and see Australia’s economic hurdles through a totally different lens to the rest of the country. It’s a two-speed economy spiralling out of control.

I acknowledge that this looming crisis isn’t just as simple as house prices in our two biggest cities, but the average house prices in these cities are ever rising and contribute significantly to overall household debt. The authorities in Canberra realise there’s an overpriced house market but appear to be reviled to take on any genuine actions to correct it for fear of a property crash.

As far as the rest of the country goes, they have a totally different set of economic prerogatives. For Western Australia and Queensland specifically, the mining bust has sent house prices tumbling downwards for years now.

Among one of the warning signs that demonstrate the household debt crisis we are beginning to see is the increase in the bankruptcy numbers across the entire country, particularly in the 2017 March quarter.

(source: https://www.afsa.gov.au/about-us/newsroom/media-release-regional-personal-insolvency-statistics-march-quarter-2017).

In the insolvency sector, our firm are noticing the damaging effects of house prices going backwards. While it is not the leading cause of personal bankruptcies, it definitely is a decisive factor.

House prices going backwards is just part of the issue; the other thing is owning a home in Australia enables lenders to put you in a very different space as far as borrowing capacity. Simply put, you can borrow far more if you are a home owner than if you are not a home owner. I bankrupt people everyday and the level of debt varies considerably from the non-home owner to the home owner. Lending is hinged on algorithms and risk, so I suppose if you own a home you’re more likely to have consistent income and less likely to end up bankrupt, so subsequently you can borrow more. If you own a home in Sydney and Melbourne, you’re a safer risk than if you own a home in Mackay, simply due to the fact that in one area the median house prices are booming and the other is going backwards, as it’s been doing so for years.

In conclusion, it seems we are running into a wall at full speed, and there are very few people suggesting we slow down. If you would like to know more about the looming household debt crisis then phone us here at Bankruptcy Experts Tamworth on 1300 795 575 or visit our website for more information: www.bankruptcyexpertstamworth.com.au

There is terrible news for business owners who have an ATO debt as of 1st July 2017. Small businesses need to be careful of ATO Bankruptcy since the ATO may unveil information of your tax debts to credit reporting agencies like Veda Advantage and Dun & Bradstreet. This will make it far more difficult for small businesses to attain credit, potentially crippling them. How could this bear upon you? You may be affected if you fit into one of the following 3 categories:

1. Have an ABN (i.e. you own a business and/or you are a contractor);.
2. Have debts with the ATO that are greater than $10,000 and are more than 90 days overdue; and.
3. You are not in any type of payment arrangement with the ATO.

Just so you’re aware, the ATO must first give notice to you before they impart your debt information to any credit agency.

If your ATO debts seem to become unmanageable and you don’t want your credit rating impaired then you have at least one feasible option: Set up a payment arrangement with the ATO. This may prevent you from ATO Bankruptcy.

Conversely, if you feel there is simply no hope or the ATO is threatening legal action against you due to your unpaid ATO debts, then bankruptcy may be a feasible option for you. If you want to know more about how you can get out from under the debilitating burden of business or personal debts, just give us a ring here at Bankruptcy Experts Tamworth on 1300 795 575 or visit our website for additional information: www.bankruptcyexpertstamworth.com.au.

A credit report is a specific document that records your history with creditors and has a substantial effect on your future financial abilities. Having a ‘good’ credit report is regular as long as you pay your bills and debt repayments punctually. Having said that, overlooking a repayment on a bill or debt repayment can cause significant issues if you intend to acquire credit again in the future. In recent years, the rules have been remodelled to place a greater significance on favourable history such as paying your bills on schedule, but overwhelmingly, credit reports are utilised as a means for lenders to evaluate your capabilities to repay a loan by checking for any financial oversights you’ve made before. If you have made some financial errors, how long does this information remain on your credit report? What kinds of financial mistakes are more drastic than others? This blog will investigate these questions to give you a better understanding of how these documents work.

What Do Credit Reports Consist of

The following will list the type of information that is commonly found on your credit report:

Personal Information including your name, address, DOB and driver’s licence details

Joint applicant details if you’ve received credit jointly with another individual

Credit card information

Arrears brought up to date, for example, any overdue or unpaid debts that have since been settled

Defaults and other infringements for example missed minimum credit card repayments and loan repayments which are more than 60 days overdue

All credit applications

Debt agreements like bankruptcy, personal insolvency, and court judgements

Repayment history which is perhaps the most critical aspect of your credit report. It covers all credit accounts such as home loans, car loans, personal loans and credit card loans. Any missed repayments will contain information such as the due date, paid date, amount, and any part payments if applicable

Commercial credit applications such as any business or commercial loan applications

Report requests which lists all the lending institutions who have previously requested a copy of your credit report1

Credit Report Defaults

Defaults with creditors will be listed on your credit report and will impair your capacity to secure credit in the future, so it’s critical to recognise what constitutes a default on your credit report. If you cannot make a repayment on a debt, your lending institution has the capability to report your debt to a credit reporting agency who will then note this information on your credit report. However, lenders can only do this if the following conditions apply:

The default amount is $150 or more;

You’re a ‘confirmed missing debtor’ or ‘clearout’ which signifies the lender cannot contact you because you have changed your phone number and address;

The debt is equal to or more than 60 days overdue; and

The lender has asked you to pay the debt by either sending you written notice in the mail, or by asking you over the phone1

Your loan provider must inform you of any intents in lodging a report prior to doing this. Usually, your contract or service agreement will describe when a default can be made and reported to a credit reporting agency.

How Long Does A Default Remain On My Credit Report

Most of the time, a credit default will stay on your credit report for five years, but if a lending institution cannot contact you because you’ve changed your contact number and address (referred to as ‘clearout’), the consequences are more extreme and the default will continue to be on your credit report for seven years. It is necessary to keep in mind that even when you do repay an overdue debt, the default will nevertheless stay on your credit report, however the status will be updated to reflect that the debt has been settled. Every time you make an application for a loan, the loan provider will always inspect your credit report first and if there are any defaults, the financial institution can reject such loan applications. If this is the case, the lender must notify you that your application has been rejected based on your bad credit report.

As you can see, credit reports are serious documents that can significantly impact your borrowing capacity and financial flexibility. The majority of the time, credit reports are either a pass or a fail, so any default, despite how big or small, will be shown on your credit report for five years. Although there are measures to improve your credit rating (like paying your bills on schedule), creditors are really only interested in any defaults on your credit report and can reject a loan application based on a single default. If anything, this article highlights the importance of paying your bills and debt repayments on time, so if you end up with any financial difficulties and can’t pay your bills by their due date, reach out to Bankruptcy Experts Tamworth on 1300 795 575 for assistance, or visit their website for more information: www.bankruptcyexpertstamworth.com.au

 

Sources:

https://www.moneysmart.gov.au/borrowing-and-credit/borrowing-basics/credit-reports

There’s no question that bankruptcy isn’t the ideal scenario to be confronting. There are some unpleasant financial penalties involved and it’s a very tough and stressful process that will affect you financially for years to come. Finding yourself in mountains of debt can materialise very quickly, and lots of individuals end up in this situation due to a wide range of factors. Not having the capacity to work resulting from illness is one of the most common reasons people declare bankruptcy. It’s not like they had any control over the situation, but being unable to pay off their debts because they have no income is the hard reality they have to face. Actually, 7,900 individuals in Australia declared bankruptcy in the March 2017 quarter1, so it’s not as rare as some people may think. If you ask me, I think that bankruptcy is neither good nor bad. Without a doubt, those who declare bankruptcy have made some poor financial decisions and will reprimanded accordingly, nevertheless filing for bankruptcy is also the first step to financial freedom. Lots of people struggle for years just to make ends meet, while their debts keep worsening, so in many cases, bankruptcy is an opportunity for a new beginning for individuals that are unable to repay their debts.

Though I’ve never been bankrupt personally, I’ve witnessed the journey of many people who have and surprisingly, most people are better off and glad they went through the process. If you’re facing financial distress and considering bankruptcy, this article will summarise what life is like after you declare bankruptcy.

You Will Not Be Completely Debt Free By Filing For Bankruptcy

Bankruptcy is quite complicated, and there is a standard misconception that all debts are eliminated by filing for bankruptcy. This is certainly not the case. There are a range of debts that won’t be removed, for example Centrelink debts, HECS debts, child support, court imposed fines (like speeding tickets), as well as money that is owed to an insurance company arising from a car accident where you were uninsured and liable. Conversely, filing for bankruptcy will clear debts like credit cards, GST and tax, and unsecured personal loans. The reality is, you will still have debts to pay after you declare bankruptcy, but the most critical debts in many cases, such as credit cards, will be eliminated.

Feelings Of Regret And Shame Are Normal

Bankruptcy is an arduous process and lots of people who declare bankruptcy have feelings of guilt and shame; as if they’ve lost in life. This is quite regular, however it’s imperative to overcome these emotions because the truth is, humans make mistakes, and bankruptcy is a way that you can make a fresh start financially and get your life back on track. The sooner you recover from these feelings of guilt, the sooner you’ll be able to start the recovery process and create a plan of how you’re going to repay your remaining debts and rebuild your credit rating. Bear in mind, bankruptcy lasts for three years and after seven years, it will no longer appear on your credit report, so it’s certainly not the end of the world.

You Can’t Borrow Any Money For Three Years

Unfortunately, by declaring bankruptcy you won’t be able to borrow any money under any circumstances for three years. During this time, it’s critical that you start rebuilding your credit rating by maintaining a regular income and paying your bills and outstanding debts on time. It’s simple but effective. After this three-year process, you become a discharged bankrupt and will have the opportunity to attain loans for secured assets like houses and cars, but your interest rates will be much higher because of your bad credit report. Although it’s not always sensible to obtain loans straight away, it is possible. After seven years from the time you became bankrupt, your credit report will be clean, and you will have the option to secure all types of loans again at competitive rates.

Life after declaring bankruptcy certainly isn’t easy, but the emotional relief that most individuals experience after starting the process definitely softens the blow. There are some serious financial repercussions involved, but declaring bankruptcy is the first step towards financial freedom and securing a bright future for you and your family. If you’re confronting financial distress, it’s always best to seek professional advice sooner rather than later. Whatever you do, don’t keep battling financially for years because you’re afraid of the stigma connected with bankruptcy. It’s challenging, but it’s also not the end of the world. If you ‘d like to talk with someone about your financial situation, contact Bankruptcy Experts Tamworth on 1300 795 575 for a confidential discussion, or alternatively visit their website for more details: www.bankruptcyexpertstamworth.com.au

 

Sources:

https://www.afsa.gov.au/statistics/personal-insolvency-statistics-0

When it concerns money, a person’s personality serves an important role in their financial decision-making. Each person is unique, and that’s what makes us human, so it really shouldn’t come as a surprise that there are some personality types that are more likely to have money problems than others. It’s difficult to reshape your personality traits, particularly when you’re older, so simply realising how your personality has an effect on your financial decisions can help you make better financial decisions down the road. It’s undeniably an important topic to understand, as money issues can exacerbate rather quickly and you can find yourself in deep water within the blink of an eye. This blog will look into four different types of personalities whom are more likely to have money concerns, alongside some recommended ways to improve your financial situation if you fall under one of these personality types.

1. The Risk-Takers

Fiscally speaking, the higher the risk the higher the reward, but the odds of experiencing high risk success is substantially low. Some folks are born as risk-takers, others develop this personality trait over time; but the majority of the time, it’s the thrill of the risk that these types of individuals relish. Statistically, the chances of financial success for the risk-takers are low, so it is vital for these types of folks to diversify their risks to increase their odds of financial success. These individuals can make high-risk investments, but they can’t put all their eggs in one basket. A blend of high-risk and low-risk investments will significantly improve their financial future.

2. The Spenders

Whether they’re wealthy or not, the spenders are the types of people who live life to the fullest without taking into consideration the financial consequences of their decision-making. Whether they’re spending money to have fun, look good, or to simply please others, the spenders are more likely to incur considerable amounts of debt which can take a long period of time to repay. For this reason, their chances of financial success are significantly impeded. Saving money is the key to financial success, so to avoid overspending, the spenders should consider developing a budget to keep track of their spending habits and at the same time, study the triggers that cause them to spend their money in the first place. Dealing with the triggers that cause these types of people to overspend is the key to fixing the issue.

3. The Ignorants

The ignorants are usually the type of folks that are financially uneducated and have no interest in improving their fiscal skills. The ignorants may have a similar mentality to the risk-takers in that they want to ‘live life to the fullest’ and as a result, spend all of their money and end up in debt. It’s crucial that people with this personality trait learn the value of money and how it can be used to provide a better future. As opposed to thinking about now, they should try to think about how spending their money now will have an effect on their future. Take an interest in learning how to budget by reading online blog posts and articles. Who knows, they might actually enjoy it?

4. The Pessimists

In stark contrast to the risk-takers, the pessimists have the tendency to pass up on opportunities to make money purely because they’re afraid they won’t succeed. When it comes down to large investments like buying a house or investing in the stock market, the pessimist will avoid taking any risks for fear of losing their hard-earned money. The problem with the pessimists is that by avoiding all risks, they will feel more safe, and this will inhibit their chances of financial growth and success. An ideal solution for the pessimists is to diversify their investments in a wide-range of markets to ensure they have a well-balanced portfolio that is low-risk and offers an opportunity for a good return.

There are naturally many other types of personalities than the ones mentioned above, however these are perhaps the most common personality traits that impedes financial growth and can cause money difficulties. In today’s world, money is without question extremely important not only for survival, but also to be able to enjoy the only life we have. Just because you have particular personality traits doesn’t signify that you can’t alter some of them in time to be more financially responsible. If you need any support with your finances, or you’ve found yourself facing a mountain of debt as a result of overspending, talk with Bankruptcy Experts Tamworth on 1300 795 575 for assistance, or visit www.bankruptcyexpertstamworth.com.au for more information.

Nearly all of us have seen the multitude of debt consolidation advertisements on TV. There is a considerable amount of competition in the debt consolidation market because unfortunately, many individuals are struggling financially and these businesses provide much needed financial relief. Mortgages, car loans, credit cards; individuals can acquire loans from a broad variety of lenders for pretty much anything in today times. The dilemma is that all these loans are difficult to manage and if you fall behind in your monthly repayments, you can end up in a lot of trouble.

The notion behind debt consolidation is that you can bring all your existing debts together and consolidate them into one, easy to manage loan that is easier and gives you a far clearer picture of your financial future. For many individuals, there are a variety of advantages in consolidating your debts, and this article will examine debt consolidation thoroughly and the advantages they provide to give you a better understanding if debt consolidation is a good alternative for your financial situation.

The Basics

Debt consolidation allows you to pay off all your current debts with a new loan that typically has different (and in most cases more attractive) interest rates and terms and conditions. There are several reasons why individuals use debt consolidation services.

High-Interest Rates

All loans have differing interest rates and terms, however, credit cards likely have the highest interest rates of all loans. Even though credit card companies normally have a no interest period of about a couple of months, the interest rates after this time can skyrocket up to 25% or higher. If you find yourself in a position where you’re paying 25% interest on your credit card loans, it’s highly likely that your debt will cultivate much faster than you’re able to pay it off. Commonly, debt consolidation can provide lower interest rates and better terms and conditions, which can save you a huge amount of money in the long-run.

Too much confusion with multiple loans.

When you have quite a few debts with different interest rates and minimum repayments that are due at different times, there’s no doubt that it can be very difficult to manage and can become confusing at times. This increases the risk of forgeting a repayment which can give you a bad credit history. Debt consolidation certainly helps in this situation by merging all of your debts into one which is notably easier to manage and gives you a clearer picture of when you’ll be debt free.

High Monthly Repayments

When people are being confronted by multiple debts, it’s challenging to manage your cash flow because of the high minimum repayments required for each debt. In addition to this, different debts have different repayment dates and this can cause people to struggle just to make ends meet. If you miss a repayment because you simply don’t have the cash, your interest rates are likely to be increased, you can get a poor credit history, and your financial position can go south particularly quickly. Debt consolidation loans provide one repayment each month, and you can arrange your monthly repayment amounts based on the length of time you want your loan to be.

Despite the benefits, if you have an interest in consolidating your debts, it’s necessary that you do ample research to find the best debt consolidation interest rates and terms and conditions. You’ll notice there’s a large range of debt consolidation companies, some are good, some are bad, and some are downright predatory. To begin with, you’ll want to pick a debt consolidation company that has lower interest rates and fees than all of your current debts. You’ll also want to review the terms and conditions very carefully. Some consolidation loans can be secured against your home or other assets, and you may be required to pay extra fees for example application fees, legal fees, stamp duty and valuation. The reality is, there is a lot of homework that needs to be done before you can conclude if debt consolidation is the right option for you.

As you can obviously see, there are a range of benefits associated with debt consolidation for individuals that are struggling financially. Lower interest rates and fees, lower monthly repayments, and less confusion with multiple debts can save you a considerable amount of money in the long-term, and it’s most probably better for your mental wellbeing too. This article isn’t written to convince you to consolidate your debts, as it all depends on your financial condition. Due to the complexity and the many variables to consider, it’s highly recommended that you seek professional advice so you can at least get an idea of what option is best for you if you’re experiencing financial distress. In some scenarios, filing for bankruptcy is a better option, so before you make any decisions about your financial future, contact Bankruptcy Experts Tamworth on 1300 795 575 or visit their website for more information: www.bankruptcyexpertstamworth.com.au

 

Bankruptcy is not a decision that should be taken lightly. There are some severe financial consequences involved and your financial freedom will be confined for years to come. This doesn’t imply that declaring bankruptcy is the end of the world though. It should really be thought of as the first step in securing a bright financial future for you and your family. Millions of individuals file for bankruptcy each year and a lot of them have the ability to buy homes, cars and attain credit cards after they’re discharged. In addition to this, understanding what life is like after you have declared bankruptcy will certainly give you insight into making better financial decisions in the future.

In essence, once you have declared bankruptcy, you relinquish control of your finances and assets to a Trustee in exchange for protection against potential lawsuits that may be taken by your creditors. Once the legal process has been finalised, you’ll be undischarged for a certain period of time (in most cases three years) after which time you’ll become discharged, which signifies that the financial constraints you suffered during bankruptcy are removed. Once discharged, your name will permanently appear on the public record (NPII) as a discharged bankrupt. What this article tries to achieve is to give you an understanding of what happens after you declare bankruptcy and what options you’ll have after you become discharged.

You Can’t Leave The Country Without Permission

One of the limitations of declaring bankruptcy is that you cannot exit the country while you’re undischarged unless you request permission from your Trustee. To do this, you’ll need to supply a lot of information regarding your destination, length of stay, contact numbers, and the reasons for your travel. It’s an offence to travel abroad without prior consent from your bankruptcy Trustee, and in most cases will increase the length of your undischarged bankruptcy to a minimum of five years instead of three.

You Will Be Offered Credit Immediately

One thing that surprises a lot of discharged bankrupts is that they will immediately be offered credit by a variety of financial institutions. The explanation behind this is that you won’t have the ability to declare bankruptcy again for an extended period of time, so lenders understand that they have a good chance of getting their money back if you secure a loan. In certain situations, acquiring a loan and making timely repayments will help strengthen your credit score, which will help you in the recovery process. But be cautious, you don’t want to accept every offer thrown in your direction as some lenders are very dubious and include hidden fees and charges that can put you in debt again instantly. The trick is to rebuild your credit score steadily.

Buying A Home Is Definitely Possible

There’s a common misconception that after you declare bankruptcy, you will no longer have the ability to attain credit for a home loan. This is definitely not the case. Although bankruptcy will leave you with a bad credit record, you can still purchase a home if you have the ability to rebuild your credit within a few years, you pay all your bills in a timely manner, and you display a responsible use of credit. Obviously, you won’t have the capacity to get a home loan straight after you’re discharged, so it’s critical to build your credit record sensibly before even envisioning securing a mortgage.

Check Your Credit On A Regular Basis

Most financial experts recommend that discharged bankrupts should take a look at their credit report at the very least twice a year. After initially filing for bankruptcy though, it’s crucial that you inspect your credit report monthly for at least the first 6 months into your bankruptcy. Certain creditors may still be demanding payments even though you are not required to make payments on any debts that were discharged in the bankruptcy process. So to prevent any further difficulties, it’s essential that you monitor your credit report to ensure it’s correct and up to date.

Whilst bankruptcy isn’t the most ideal position to be in, it doesn’t mean that your financial future is permanently constrained. There are some serious financial constraints imposed on individuals that declare bankruptcy, but after they become discharged and slowly rebuild their credit rating, they’re completely capable of securing a bright financial future. Obtaining home loans and other lines of credit will be possible a couple of years after discharge if the recovery process is well-planned and executed. Therefore, it’s vital that you seek professional advice from bankruptcy experts to assist you in the process, as bankruptcy is considerably complicated and there are many factors to must be taken into account to ensure a smooth recovery process. If you’re thinking about filing for bankruptcy, phone Bankruptcy Experts Tamworth on 1300 795 575 or visit their website for more details: www.bankruptcyexpertstamworth.com.au

Experiencing financial hardship is a pretty stressful situation and sadly, millions of people throughout the world end up in this position each year. Individuals in this scenario have quite a few options to recover from their financial problems, and bankruptcy should be regarded as a last resort when all other options have been exhausted. You’ve quite possibly seen some of those debt consolidating companies offer their services on TV for example. In many cases, it can be overwhelming to try to work out ways to recover from financial complications, and many will resort to bankruptcy simply because it seems to be the easiest way of doing so. But how do you know if bankruptcy is the right option for you? This article will shed some light into bankruptcy to help you determine if bankruptcy is the best option for your individual situation.

Bankruptcy has some pretty serious financial implications: a bad credit report, increased difficulty in obtaining loans, and higher interest rates are just a couple of these. So needless to say, bankruptcy should never be taken lightly. There are a lot of debt consolidating companies that are happy to help, which is similar to bankruptcy as all your debts are merged into one. This is commonly considered a feasible alternative to bankruptcy as the financial penalties aren’t as severe. But the best way to determine if bankruptcy is the best alternative for you is to seek reliable advice from bankruptcy experts. In the meantime, however, here are some indications that your financial position is in a dangerous condition and bankruptcy may be the best solution for you.

No Savings

If you don’t have any savings in the bank and you’re facing a mountain of debt, then bankruptcy may well be the best alternative for you. Even if you have the opportunity to work a second job to increase your income, will this enable you to recover from your debts in the next 5 years? If no, then you really should think about seeking professional advice about your scenario, as bankruptcy can be a desirable alternative. Declaring bankruptcy will relieve you of these debts and whilst there are financial consequences, it’s probably the best way to recover in this situation.

Making Minimum Repayments Only

If you can only manage to make the minimum repayments on your debts, then the interest on these debts will magnify rapidly and you should really consider bankruptcy before your financial position worsens. With no additional income, it can often times take up to 30 years to pay off your debts by making minimum repayments only, so all the interest you’ll be paying over these years can really amount to large sums of money. Whilst you’ll still be repaying debts with interest after declaring bankruptcy, typically you can negotiate better terms on conditions on your debts after filing for bankruptcy.

Debt Collectors Are Calling You

When you’re being constantly hassled by debt collectors on the telephone and in the mail, it’s an indicator that your financial scenario is deteriorating and you have to make some changes. When you’re being contacted by debt collectors, it means that your creditors have sold your debts at heavily discounted rates to debt collectors because they feel that you aren’t in a situation to settle these debts in a reasonable time frame. This is a clear indication that you should seriously look at filing for bankruptcy as it’s likely the best solution for both your finances and your emotional well-being.

Whilst there are some severe financial implications, bankruptcy isn’t the end of the world and in many cases, it’s the first step to financial freedom. When you’re being confronted by a mountain of debt and you can’t see any way of recovering in the near future, it’s time to seek professional advice to discover what options you have. While there are many alternatives available to help you in financial hardship, if you’re encountering any of these warning signs then chances are that bankruptcy is the best alternative to ensure you and your family can secure a bright future. Regardless, if you’re encountering financial difficulties, it’s best to talk to bankruptcy professionals sooner rather than later. For a confidential discussion about your financial circumstances, contact Bankruptcy Experts Tamworth on 1300 795 575 or visit www.bankruptcyexpertstamworth.com.au

Providing food for your family is paramount and the costs of doing so can vary extensively depending upon your mood, financial situation, and whether or not you’re hungry when you head to the grocery store! But the truth is that food is a big expense for a large number of families, and uncovering ways to save at the grocery store can amount to a great deal of money in time. You might even be able to take the family on a getaway with all the cash you can save on food throughout the year if you spend your money carefully. All of us wish we could save more money on groceries, so here’s a simple guide on some valuable tips on how to do exactly that.

Plan Your Meals

It’s typical for individuals to head to the supermarket with a list of items they need, but not often do they plan every meal of the week and all the ingredients that are needed. Organising your meals and ingredients beforehand will make it easy for you to spend your money only on what is needed. In doing so, you’ll also need to know what you already have at home, so it’s a bright idea to use the items you already have in preparing your meals for the week. There are also some meals that are substantially less expensive than others, so if you really wish to save money, select meals that are low cost but fulfilling. You can discover lots of cheap meal menus on the web. It’s also a good idea to have a paper and pen in the kitchen so as soon as you run out of a specific ingredient, write it down straight away so you remember the next time you’re at the supermarket.

Don’t Go To The Grocery store When You’re Hungry!

It’s important that you always eat something prior to heading to the supermarket for your weekly shopping. If you’ve ever been to the grocery store when you’re famished, you’ll know what I mean! Personally, I start salivating when I find foods that I like but don’t really need and consequently, they wind up in my shopping trolley. Even if you’ve planned your meals for the week and have a list of ingredients with you, quite often the temptations are overwhelming and can cause you to spend money on unnecessary items.

Use Loyalty Cards

A wonderful way to save money on groceries is to use loyalty cards at the check out. Commonly, you’ll get a discount on various items that aren’t displayed and you’ll also earn points which could be used either by buying a gift card or various other featured items. Either way, you’ll be saving money that would otherwise be going down the drain!

Compare Prices

There are many substitutes for the same type of food so it’s crucial that you invest some time examining the prices to make sure you get the best value for money. You don’t always have to buy the ‘no frills’ products, but supermarkets will often have sales on a range of items so it’s useful to do your research. In addition to this, when there’s a sale on a specific item, it’s always a terrific idea to stock up when the prices are at their lowest. You’ll additionally want to review the prices of your most frequently used foods at various supermarkets to identify which items are more affordable. It might be the case where you travel to two grocery stores when undertaking your weekly shopping expedition, but the price savings are well worth it.

Shop In The Evening

I know it sounds tough especially after a long day at the workplace, but shopping in the evening is the best time to encounter discounts. Perishable goods like fruit and vegetables and bakery items are often discounted if there is too much inventory for the next day. The best part is that these items are almost as good as new except cheaper! You’ll be surprised with the amount of discounts you’ll find at the grocery store if you go shopping at the end of the day.

So there you have it folks! There’s loads of ways to save money on groceries and the above suggestions are really just scratching the surface. If you have the chance to save $20 a week on food, which is very realistic, you’ll be saving over $1,000 in the year! However, if you’ve tried all of the above recommendations and are still struggling to find enough money, it might be best to seek professional advice regarding your financial position. If this is the case, talk with Bankruptcy Experts Tamworth on 1300 795 575 or visit their website for additional information: www.bankruptcyexpertstamworth.com.au

Everyone loves money, especially spending it! Getting new toys or new clothes which make you look and feel good is important for your confidence and self-esteem. But how do you know if you’re good with money or not? Even if you get paid lots of money doesn’t imply you’re good with it. There are plenty of successful people who have huge issues with money just because they weren’t aware of the warning signs. Today, it’s very important to be money conscious so here are 5 signs that you could have issues with money which can ultimately lead to serious financial issues in the future.

You don’t have any savings

Most of us get complacent with our lifestyles – our car, our home, our work – and forget that things can actually go wrong and everyone needs some financial protection for rainy days. Without any savings in the bank, what will cover you from events like hospitalisation, job loss or car accidents? If you’re living paycheque to paycheque, all it takes is one financial hit and you’ll be in a lot of trouble. You’ll need to get a short-term, high interest loan which will just compound the issue – you can’t save any money currently so how will you repay an additional expense? Although it’s easy to neglect, having no savings is a recipe for disaster and you should take action now before it’s too late. The majority of financial advisors advise having three to six months of living expenses in an emergency fund.

You have no idea where your money goes

Being good with money means that you know when and how much money comes in, and where it goes when you spend it. If you have no idea where your money is being spent, it shows a lack of care and respect for your hard-earned cash, and can clearly lead to financial issues before you know it. Try creating a budget and actively adhering to it. This will help you in having a greater understanding of your finances so you can recognise how much of your money is being wasted on nonessential items. After a month or so, reward yourself for sticking to your budget and you’ll enjoy spending money on yourself a lot more.

Making minimum repayments only

If you can only manage to make the minimum repayments on your loans, in particular credit cards, then you’re heading for financial problems. It can take many years, even decades, to get rid of a credit card debt by only making minimum repayments. Meanwhile, interest charges will be eating away all your prospective savings while you’re essentially just treading water. If this seems familiar, it’s time to make a change and quickly. You have to get your priorities right by creating a plan, adhering to a budget, and saving as much money as possible to settle your remaining debts.

Spending more than you earn

The clearest sign of money problems is where your spending surpasses your earnings. Even if you have a healthy savings account, you must always ensure that your earnings is higher than your expenses, it’s just basic maths really. If you get into a bad habit of spending far too much, it can become addictive and trigger even more issues, on top of likely financial difficulties. Some people try to mask this problem by paying bills with their credit cards which merely makes the problem worse in the long run. Do you even know if your earnings is greater than your spending? If you’re uncertain, it’s perhaps a good time to find out and make some changes.

You have new clothes in your wardrobe that you don’t use

A useful way to assess if you have money problems is to look in your wardrobe. Do you have clothes that still have the price tag on them? Almost everyone loves a sale, and it’s a good way to save money when cash is tight and you’re in need of something. But purchasing clothes solely because they’re on sale may suggest that you have money issues. If this is the case, you may similarly be inclined to buy other items simply because they’re on sale too. Buying nonessential items under the impression that you’re saving money is something that needs to be amended.

Regardless of how much you get paid, if you’re not good with money then now is the time to modify your habits to stay away from possible issues in the future. If any of these warning signs sound familiar to you, it may indicate that you have problems with money and should seek advice before it’s too late. All it takes is one financial blow and you’ll be pulled into the financial abyss. To find out what options you have, or to speak to someone about your finances, contact Bankruptcy Experts Tamworth on 1300 795 575 or visit http://www.bankruptcyexpertstamworth.com.au