Many people in Australia are currently facing financial difficulties due to various natural disasters, the housing affordability crisis and rising interest rates.

If you are currently in financial distress, there are several ways you can get help:

• Speak to a Financial Advisor – call the National Debt Hotline to speak to a free financial advisor about your options.
• Contact your bank – your bank can review your unique circumstances and help you develop a plan.
• Contact your insurance provider – they have a number of options to help you.
• Emotional Support – If your financial situation is affecting your mental health, you can contact Beyond Blue on 1300 22 46 36.
• Free Legal Advice – If you need legal help because of your financial situation, you can get free advice from the community legal centers and legal aid offices in each state and territory.

There is a way forward when it comes to debt

Way Forward is an Australian debt resolution charity that offers free debt advice and financial support to help people struggling with debt.

Way Forward is continually expanding its membership base – since January 2021 the organization has added eight new members, most recently: Credit Corp, Australia’s largest debt buyer and collector.

Way Forward currently has 15 members including Commonwealth Bank, ANZ Bank, HSBC and ING.

Way Forward Communications Manager Laura Menninan says: “Way Forward expects demand for its free service to increase in 2022. Industry support is vital to ensure the service is well-equipped to help more Australians end the cycle of problem debt.”

Another approach – consolidation loans

Taking out a consolidation loan can be one way to help you recover from financial difficulties.

A consolidation loan is a loan that combines your high-interest loans and even credit card repayments into one loan with lower repayments — meaning you have one bill to pay each month instead of many.

It’s a kind of debt relief because you’re still paying off your debt, but at a reduced rate. If you are consolidating a high-yield credit card or even a personal loan, chances are you can get a lower interest rate with a debt consolidation loan.

If you want to consider a consolidation loan, we have a guide that will answer all of your additional questions.

^* WARNING: The Comparative Rate combines the lender’s interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparative rates shown are calculated based on a $30,000 5 year loan or a $10,000 3 year loan as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and a unsecured basis basis for unsecured loans. This comparative rate applies only to the example or examples given. Different amounts and maturities lead to different comparison rates. Costs such as redemption fees or prepayment penalties and cost savings such as fee waivers are not included in the benchmark rate but may affect borrowing costs.

^See information on the Mozo Experts Choice Personal Loan Awards

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