Don't ignore debt problems. Take action before your debts accumulate.
Tips for dealing with debt
Prepare and stick to a budget to help you manage your finances so that debts don’t take you by surprise.
A free and independent financial counselling service may be able to help you if you are having trouble paying your debts or managing your budget.
If you cannot meet your financial commitments, contact the creditor (the business or person you owe money to) without delay to discuss a repayment plan.
When negotiating a repayment plan, be realistic about what you can afford to pay, taking into account your other financial commitments. Be honest with the creditor or debt collector about your situation.
Keep copies of any letters you send or receive (and notes of any conversations you have).
Make sure you actually owe the debt. Ask for proof (e.g. documents, account statements) if you think a debt is not yours or if you disagree with the amount demanded you can dispute it with the creditor or debt collector.
Regularly check the accuracy of your credit report.
Get independent advice if you are still not sure whether you have to pay some or all of a debt.
If you are contacted about a debt that is several years old, do not confirm the debt or make a payment until you get independent advice.
If you are contacted about a debt, be cooperative, and expect to be treated professionally. Make a complaint if a creditor or debt collector misleads you, threatens you or is abusive.
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. For information about how to get a copy of your credit report from the credit reporting agency, ask a financial counsellor, visit the Australian Financial Counselling and Credit Reform Association.
