Credit Rating Not So Good?

Everyone at some stage in their life experiences financial pressures resulting from poor budgeting, impulse buying, unforeseen circumstances and just being in the wrong place at the wrong time. What we don’t realise is these poor circumstances can result in a poor credit rating if you don’t prioritise your finances. The good news is with proper budgeting you can improve this. You have the power to be in control.

If any of those above scenarios fit in with you currently and you’re asking yourself “How do I get myself in a better financial position for a loan” or “How do I prioritise my current expenses” we have some helpful hints.

Online Budget Calculator

An online budget calculator is one of the best tools for those who need to visualise their money in verse money out scenario. Try this website through the Australian Securities and Investments Commission for a detailed online calculator. Using a budget calculator can help track your spending.

The first thing you need to look at immediately is what is a priority in your life verse want. What one person may think a priority is to another not so much, but we can all agree that our basic human needs of having a roof over our head, food on the table and clothes on our back is a necessity, not a want. Anything past that really is a want. You will need to list down all of your debts so you know exactly where you stand. Having a clear picture of what you owe helps you understand how best to move forward.

Consolidation of Debts

You may wish to apply or have a few of your debts consolidated into one loan. This may save on fees that are associated with each individual loan. It can also help with repayments as you are managing only the one repayment as opposed to several small repayments. But make sure you thoroughly understand the terms and conditions of this new loan including the interest rate and length of loan before signing anything.

Paying your bills on time should always be a priority, even if it is only the minimum amount required. Dishonoured payments can affect your credit history negatively, so prioritise making that repayment.

Free Financial Help and Guidance

If you feel that you are in an “out of control” situation there is free help and guidance by ways of financial counselling, free legal advice and urgent money help. Follow this link for one avenue on who you can contact for assistance. Always be aware when reaching out for financial help that some organisations may have hidden fees for providing this help and you may be in a worse-off situation applying for assistance through them. Don’t be pressured into signing any documentation until you seek legal advice.

As I mentioned earlier having a budget is important to get on top and stay on top of your finances. Prioritising your debts and working out which ones need to be paid off first are essential. Don’t put yourself in a position of applying for more credit, from any credit provider until you work out where you currently are at financially.

Often the hardest part is reaching out for assistance and guidance. So always remember that you are not alone. Financial counselling can be a free service offered by many community organisations and they can assist you to solve those money problems.