People who care, working with people who care.

While we are facing many hardships and challenges right now and with so many uncertainties, it’s important to focus on what we can control.  Financial stress can have so many flow-on effects for you, your relationships and your health.

 

There are a few things you can take matters into your own hands and get through the next challenging phase:

1. Talk to your bank, mortgage broker or lender

Most financial institutions have already announced concessions available for mortgage holders, but it’s up to you to consider what your situation is and be on the front foot in contacting them before you get into trouble.  Some of the options include deferring mortgage payments for up to 3 months, switching to an interest-only loan or making an agreement on what you can pay in the short term.

 

2. Plan and prioritise payments and expenses

Some debts are more important than others and just like creating a “to-do list” setting our your debt and expenses list then setting their priorities can provide you with more certainty, take a significant amount of pressure off you and allow you to plan for the next few months.

3. Forecast cashflow

Don’t ignore the fact that many of us will be operating on reduced incomes.  Sit down and write out where your income is coming from and what will be coming in over the next few months, then type this into a spreadsheet with the priority payments and expenses you have also prepared (point 2).  You should have a clear cashflow plan and be able to see if you will hit trouble over the next 3 months.

4. Defer tax debt

Whether you have an existing or an upcoming tax debt with the ATO, the ATO is willing to help.  The ATO has responded to the COVID-19 crisis and has a range of options for help available.  This includes deferring tax payments of up to six months and offering low-interest payment plans.

 

5. Talk to your financial adviser

Talk to an expert about your individual circumstances.

6. Know your rights about your Credit Rating

Australians who have applied for and been granted a 3 or 6-month deferral on loan repayments or switch to interest-only repayments on their mortgage or other financial obligations due to COVID19, will not be adversely affected on their Credit Rating for accessing such a deferral - so long as they were up to date with repayments prior to making the request.

“If a customer is granted a deferral on their mortgage and other credit products because of COVID-19, banks will report customers as not having missed a repayment, provided they were all up to date when granted relief,”

*Anna Bligh - Australian Banking Association CEO

The most important thing is to act, be armed with the facts and to plan and communicate.

If you need help with this, please contact us at [email protected]

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