MyCRA Specialist Credit Repair Lawyers

Tag: credit savvy

  • The Top 5 Reasons You’re Still In Debt

    debtToday we feature a Savingsguide.com.au Australia article on the hang-ups you might have with money that could be stopping you from recovering from debt issues.

    This article is posted in its entirety in aid of our ‘Make Credit Work For You’ section, helping you to stay credit savvy, and giving you the best chance to prevent credit rating defaults and have your credit file looking its best.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    Below is Savingguide’s article about why it is you might still be in debt:

    The Top 5 Reasons You Are Still In Debt

    By Alex Wilson, Savingsguide.com.au

    Have you ever wondered why it is you are always in debt? I have. It’s much like trying to lose weight, you always find yourself secretly knowing what you are doing wrong but never wanting to admit it.

    This is what led me to start thinking about some of the reasons we as consumers remain in constant debt. While we probably know that we are doing these things, it’s not until someone calls us up on it that we realise we need to fix it.

    So here are the top 5 reasons that you continue to have a credit card debt, personal debt or any other kind of debt.

    Tell me if you agree or not at the end as I would love to know your thoughts on this.

     

    5. You earn X per day, but spend Y

    I did the simplest thing the other day. I got my monthly salary, divided it by the number of working days in the month and found out how much money I make, on a daily basis, after tax.

    What astounded me was that it wasn’t a whole heap when you factor in that each day I buy train tickets, coffees, food and the odd magazine or gift.

    One of the biggest reasons we as consumers remain in debt is that we end up living to work, instead of working to live. Do you really want to spend all that money on a work day when it’s bit by bit taking away from your daily earnings?

    Do the math – figure out your daily rate and then do a rough calculation of how much you spend on any given day. It’s scary.

     

    4. You focus on what you want, not what you have

    Another reason you are still in debt is that you forever focus on the things you want, not the things you already have.

    Stop desiring over clothes, cars, fast food and other easy ways to spend. Start focusing on the clothes you already have, the car you already own and the food you already have in the cupboard.

    Consider reading about how to stop buying stuff to solve problems – it might give you some ideas on how to make do or assess whether you really need something.

     

    3. You swipe credit, delaying your rational thinking

    Swiping a credit card obviously puts you in debt. Another thing it does is disconnect you from the reality of your finances. Money becomes a play thing.

    Try and reconnect with your money, use only cash for a while. It gives you a better sense of what you are spending. Parting with a $50 note is much harder than swiping a card.

    This mentality of delaying your rational money saving thinking is partly to blame for why you remain in debt. Always opt for cash where possible.

     

    2. You have no clue about expenses, their amount and their due date

    You know you pay the mortgage, phone bill, Foxtel bill and more – though you don’t really know how much they all cost as a whole.

    Yes the phone bill is only $29, but when you add it onto the list of other expenses that recur every month, it quickly gets out of control.

    Learn the total of your expenses by setting up a direct debit account that is solely for recurring expenses. After a month or so you will quickly see the stand alone expense transactions and it will help you calculate what you pay on any given month.

    From there, open up your work PC or home PC and make a calendar in Outlook or Google Calendar. Make recurring appointments on the days these debits come out of your account. This means you will always know in advance what expenses you have coming up.

    I even set mine to alert me on my phone 24 hours before they are due. It keeps me in charge of my expenses and fully understanding of just how much I am spending.

     

    1. You have no budget and no focus on repaying debt

    Another reason you remain in debt is because you are not proactive enough. Having a budget is one thing, but what you really need is a budget that focuses on finding spending leaks that can be repaired and used to fund extra debt repayments.

    Read more about budgeting to get out of debt here or alternatively, check out the Savings Guide Budget Spreadsheet here.

    A MyCRA Credit Rating Repair tip to stay credit savvy…

    If you are educated on credit reporting in Australia, you will save money. Know what the rules are around credit reporting in Australia, and know what your credit file says about you. If you discover inaccuracies on your credit file you can save yourself money by having them removed.

    If you have neither the time, nor knowledge of legislation that is required to deal with Credit Providers, a credit repairer can advocate for you to make the case for removal of inaccurate defaults from your credit rating on your behalf.

    Image: artur84/ www.FreeDigitalPhotos.net

     

  • Australian credit habits under the microscope – are you ready?

    Press Release

    credit habits under the microscopeAustralian credit habits under the microscope – are you ready?

    10 May 2013

    The credit habits of Australians will be scrutinised like never before when new credit reporting laws take effect in March next year, and a consumer advocate for accurate credit reporting warns, now is the time to make some big changes to protect your future.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says this is an important time to know about Australia’s credit laws, and to be careful with how you use and repay credit.

    “Australian consumers are currently under the microscope with their repayments, and if they are more than five days late paying a loan or a credit card that will go on their credit file for two years and show up as of next year,” Mr Doessel advises.

    “This information will be part of five new data sets to show up on your credit report – and Australians need to be credit savvy to make the changes work for them,” he says.

    This new information for lenders is part of wide-sweeping amendments to Australia’s Privacy Act, which includes a new Credit Reporting Code of Conduct.

    Mr Doessel outlines some things that every credit-active should know about our new laws:

    What you need to know and do to be credit savvy

    1. Pay on time, every time. Make repayments on accounts (such as credit cards and loans) on time to avoid having late payment notations recorded on your credit file. There is a five day grace period. It doesn’t have to be a big amount to impact you. Too many late payment notations may mean you’re refused credit, or offered a higher interest rate.

    If you let your account go more than 60 days in arrears you will also be default listed. This listing will show on your credit file for five years, and applies to amounts over $150.

    2. If you can’t pay, actively seek help. There will be new laws to help prevent you from being defaulted if you are under financial hardship. You need to make arrangements early with your lender, and this will be recorded on your credit file. If you make your repayments on time, you may be able to offset the variation. So there is a new incentive to get in and work it out with your lender prior to letting your accounts go into arrears and copping a default listing.

    3. Take precautions when applying for credit. The volume of credit you apply for and the type of credit you apply for can hinder any future credit application you may make. Whilst it is a great idea to research credit before applying – you should only make a credit application you have full intention of pursuing. In addition, high interest’ or ‘bad credit’ loan applications may shave points off your rating.

    4. Seek cautions credit limits. If you’re not using it, don’t have it is the general rule. If you take out a credit card or other line of credit, it’s probably not wise to opt for a lofty limit, but ask for an amount closer to what you intend to use. Any credit ‘rating’ may be reduced by credit limits which are too high.

    5. Prevent identity theft. Understand how lucrative your personal information can be in the wrong hands, and take steps to keep abreast of how it can be at risk from identity theft, which can lead to the stealing of credit by fraudsters accessing your credit file. Victims can end up with defaults on their credit file and blacklisted from credit for 5 years.

    New laws will allow you to place a ban period on your credit information if you believe you may be at risk of identity theft, which can prevent fraudsters from accessing credit in your name – so if you feel you may be at risk – acting quickly may prevent your credit file from being impacted.

    6. Check your credit file regularly. With the new information, it will be more important than ever to check your credit file. Many people don’t know you can do this for free annually through the Australia’s credit reporting agencies and a copy is sent within 10 working days. There will be five new data sets of information available to Credit Providers who request a copy of your credit report. These will be:

    1. repayment history information;

    2. the date on which a credit account was opened;

    3. the date on which a credit account was closed;

    4. the type of credit account opened;

    5. and the current limit of each open credit account.

    It is up to you to ensure your credit file reads accurately.

    7. Correct credit information which you believe is inaccurate, inconsistent or unfair. To offset the new information, new laws are currently being devised to make it fairer for those disadvantaged individuals to access and correct their credit report.

    But beware, there will still be a requirement to work within and have knowledge of credit reporting law when disputing an inaccurate or unfair credit listing, and it is important to note, that Credit Providers and Ombudsman cannot advocate on your behalf. You can start by contacting your Credit Provider yourself to alter incorrect information, or you can seek help from a credit repairer or lawyer. You should take steps to rectify mistakes before the information has any bearing on a credit application you may make in the future.

    After March 2014, if your Credit Provider disagrees with your request to correct your credit information, you can have your dispute noted on your credit file and this would be worthwhile requesting if you believe your listing shouldn’t be there.

    /ENDS.

    Please contact:

    Graham Doessel – CEO Ph 3124 7133

    Lisa Brewster – Media Relations media@mycra.com.au

    Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog

    MyCRA Credit Repair 246 Stafford Rd, STAFFORD Qld

    MyCRA is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files. CEO of MyCRA Graham Doessel is a frequent consumer spokesperson for credit reporting issues and is a founding member of the Credit Repair Industry Association of Australasia.

    Image: ddpavumba/ www.FreeDigitalPhotos.net