Getting Credit Card Debt Under Control

First things first. To get your credit card debt under control you require a realistic assessment of your income and expenses. There are no if's, but's or maybe's about it. If you are consistently spending more then you earn it is time to rectify the situation.

Budget
To get your credit card spending under control you need to build a debt control strategy that will lead you to becoming debt free or at least reduce your burden. You need to know how much your total debt is and how long it will take you to repay that debt at your current payment rate. By developing a budget that enables you to track your income and expenses, you can then begin to cut unnecessary expenses and use more of your income to pay off your debts. Simple steps such as allocating a set amount per week to pay off your debt will allow you to get it under control faster. It is important to be realistic with your goals and aim to get your debt under control as soon as possible.

Consolidate
If you are paying off multiple cards at varying interest rates you are more then likely paying more interest then necessary. In this case it would be important to consider a debt consolidation loan. By consolidating your debts you simplify your finances and place all of your debt together into the one account with a fixed interest rate. The proceeds from the loan are used to pay back your other creditors and then you make monthly payments back to the loan consolidator. Usually these loans have much more competitive rates then the purcahse interest rate charged by credit card providers. If you have multiple unsecured debts, you are probably paying far too much in interest. If you are overwhelmed by unsecured debt (such as credit card debt or other unsecured loans), consolidating these unsecured financial obligations has many benefits, including saving you thousands of dollars in the long-term, reducing your total monthly payments, helping you become debt free faster, and improving your credit rating.

One of the most important aspects of debt management is understanding how you got into debt in the first place. If your debts were a result of spending beyond your means, you must modify your budget to avoid this situation in the future. Controlling debt requires self discipline, restraint, and planning. You must address the reasons that landed you in the situation in the first place. No plan for getting out of debt will ever succeed if you continue along the same path. So take action now!

If credit card debt struggles are keeping you up at night it is important that you get them under control now! Speak to your bank or credit provider about how you can get your debt control back on track.

How will the carbon price affect you?

The announcement yesterday by the Gillard government of a $23 a tonne carbon price from July 1, 2012 may mean many things for you and your business. Whilst the tax is targeted toward the 500 or so largest polluters in the nation, the flow on effect in prices may have an impact on your overall financial position.

Families in the lower to middle income range should be, at least initially, compensated through tax cuts and welfare increases. However, for many middle income earning families the tax will have some impact on overall financial position. For example a family with two dependant children earning a combined income of $90,000 a year can expect to be out of pocket by around $120. This increases as taxable income rises. A personal calculator can be found on the Clean Energy Future website which estimates the impact of a carbon tax on you and your family:
https://www.cleanenergyfuture.gov.au/helping-households/household-assistance-estimator/

For small and medium business the carbon tax will also have a real effect on operating costs in the short term. The government has taken the step of increasing the instant asset write-off from $5,000 to $6,500 for purchases after July 1, 2010 which is a step in the right direction. Despite this, there will be increased energy, inventory and other costs passed on that will not be reimbursed by the government. The government has also provided information for small business on their clean energy website:
http://www.cleanenergyfuture.gov.au/helping-business/business-and-a-clean-energy-future/

Every business and individual circumstance will vary and therfore it is important to consult your tax and financial professional for more specific advice.

Please visit our website for more information: http://www.elitefinance.com.au/