If you are having difficulty paying your debts, discuss your options with a financial counsellor. Financial counselling services are available free in every state and territory and can help you to:
plan and manage your finances better
negotiate with debt collectors
manage a debt crisis
overcome gambling problems
evaluate bankruptcy and its consequences.
To find a financial counselling organisation near you look under 'Counselling' on the Australian Financial Counselling and Credit Reform Association website or search our Consumer & business directory under the quick link 'Community Legal Centres, Legal Aid and Consumer Organisations'. There is a link to the directory in the menu on the left. You can also go to ASIC's consumer website, FIDO, or call ASIC's Infoline on 1300 300 630.
Some other businesses also help people struggling with debt however they charge for these services. Make sure you know what service you are getting from these businesses and how much it is going to cost you. You may be able to get these services for free from a financial counsellor.
Dispute resolution schemes
Many industries (such as banking, telecommunications, energy, water and insurance) have their own dispute resolution schemes (sometimes called an ombudsman scheme). These schemes are available to consumers free of charge, and decisions are binding. If you have an ongoing dispute, the ombudsman from the industry you are dealing with may be able to help you resolve the matter.
Legal proceedings against you generally cannot be started while a matter is being considered by an ombudsman, so it is a good idea to raise your concerns with the ombudsman as soon as you think you have a dispute you cannot resolve yourself. Do not wait until legal proceedings have started, as generally it will be too late to refer the matter to the ombudsman and, if you wish to dispute the debt, you will need to file a defence in court.
You can search our Consumer & business directory for contact details of ombudsman and dispute resolution schemes. There is a link to the directory in the menu on the left.
Legal advice
Many people facing legal problems because of debt cannot afford a private solicitor. Free legal aid and community legal services are available in every state and territory. In some courts, chamber magistrates can also give initial advice to people who have had civil proceedings brought against them.
Search our Consumer & business directory for contact details for community legal centres or legal aid offices in your area. You can also check the National Association of Community Legal Centre's 'CLC Directory' for details of over 160 community legal centres across Australia or the 'Community Advisory Services' section of your Yellow Pages.
Getting a copy of your credit report
Your credit report has information about you and your credit history. You might want to get a copy of your report to check that the information is accurate and fix any mistakes. Further information about obtaining a credit file and how to deal with mistakes recorded on your file can be provided by a financial counsellor, by visiting ASIC's consumer website, FIDO or calling ASIC's Infoline on 1300 300 630.
Finding out about bankruptcy
For some people in debt crisis, bankruptcy or a Bankruptcy Act agreement may be an option, although this has serious consequences. It is very important that you get advice from a free and independent financial counsellor or a qualified financial adviser before taking any action if you are thinking about bankruptcy as an option. You can also get information on personal bankruptcy from the Insolvency Trustee Service Australia (ITSA), the government body that regulates the personal insolvency system in Australia.
