Hints for dealing with your debts

Managing debt

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.