Hints for dealing with your debts

• Take action now—if you are struggling to keep up with your debt repayments, don't ignore the problem, or hope it will go away.
• Prepare and stick to a budget to help you manage your finances so that debts don’t build up and take you by surprise.
• If you feel yourself getting into difficulty, advise the business or person you owe money to (the creditor) as soon as possible.
• Contact a financial counsellor to discuss your options for managing your debt and get some advice on the best course of action.
• Set up a repayment plan with your creditor or debt collector—be realistic about what you can afford to pay.
• If you are contacted about a debt, be cooperative and expect to be treated professionally.
• Keep a complete record of your dealings with the creditor or debt collector.
• Ask for proof of the debt to make sure you actually owe the amount demanded.
• If you are unsure about, or disagree with, any aspect of the debt you can dispute it with the creditor or debt collector.
• Get independent advice as soon as possible if you are:
• not sure whether you have to pay some or all of the debt
• contacted about a debt that is more than several years old—don’t confirm that the debt is yours or start making payments until you have independent advice about it 
• you are threatened with legal or court action
• you are considering bankruptcy.
• Don’t ignore debt problems—be aware of your rights and obligations concerning any debts you owe and their collection and the consequences of non-payment.
• Regularly obtain a copy of your credit report and check for mistakes.
• Make a formal complaint if a creditor or debt collector misleads you, threatens you or is abusive.

More tips on managing debt problems are available in a free booklet Dealing with debt: your rights and responsibilities. Please contact our Infocentre on 1300 505 302 if you would like to receive a copy of this booklet. It was produced in conjunction with the Australian Securities and Investment Commission (ASIC) and is available in English, Arabic, Vietnamese, Chinese, Italian, Greek and Turkish.

ASIC’s consumer website FIDO also has lots of information to help you manage your finances. FIDO’s Managing your loans and your mortgage, and How to deal with debt pages provide detailed advice on dealing with debt problems.