It’s that time of the year again – time for tracking down group certificates, getting confused by endless numbers and financial terms, and scrambling through bags and cupboards for lost receipts. Taxes have to be paid, financial advisors have to be sought out, and end of financial year sales will dominate the chain stores; bar Christmas, there are few times throughout the year during which such a huge amount of money will be changing hands throughout the country.
So, what about the tax that you get back? Chances are that you will get something back, whether it be a little or a lot – and at the change of the financial year you may get a bonus or pay rise. It’s all too easy to blow your tax money on the sales, a weekend away, or a new flat screen for your lounge room. But in the current economic climate, it may be best for you, or you and your family, to hold off on the luxuries and pay off your debts or put money into the areas that need it.
The 2011 census revealed that not only do over half of all Australians have a mortgage, but that the median monthly mortgage repayments increased from $1,300 (2006) to $1,800 in 2011. Weekly household rent prices rose almost $100 over that same period, and median household incomes only increased by 20 per cent. Many families and households have been hit by these inflated numbers over the past five years or so – which is why we recommend putting at least a certain percentage of your tax return money back into your mortgage or rent budget, to ensure that you become debt free. We also suggest utilising online tools like budget planners and spread sheets, or contacting an expert for advice.
For those who are already struggling or whose tax return money won’t put enough of a dent in your personal, business or household debt, there are other options to consider. Loan refinancing or debt consolidation can significantly improve your situation, acting to group your current debts and loans together into one easy to manage monthly payment to ensure you know where you stand and don’t lose track of anything. Debt agreements can also be effective – entering into an agreement with your creditors that entails different criteria to your previous contract, usually involving payments over a longer period of time and no interest charges.
Whatever your situation may be, take a moment to consider your personal or family financial situation before going for that weekend in Bali. If you are struggling with your debt, seek out help today to get your financial situation healthy again. lifeafterdebt.com.au are experienced, qualified and ready to help. Give us a call on 1300 237 669 or visit our website today for more information.