Debt is a Part of Life

A car, an education, a home – what do these things all have in common? Aside from being the basic necessities of life, they are all prohibitively expensive to the average, gainfully employed, respectable citizen. Credit puts life’s goals within reach. But with credit comes debt.

Just like your credit rating, debt can be both bad and good. Debt is an essential part of life, and how we approach it determines whether it is extended as a helping hand, a wagging finger or a punishing slap to the face. Used properly, credit can open doors in your life – but runaway debt can just as easily slam them shut.

There is a lot to understand about personal finance: credit scores, debt loans, credit reports, debt consolidation, collections, penalties and government regulations. We aim to unravel the mess of confusing terms, vague promises and daunting uncertainties with salient, clear-cut explanations and highly readable resources written from a consumer’s perspective. While we’ll work to address all the intricacies of credit and debt, all of our information will be written in the spirit of a few guiding principles:

Bad credit is easy to fall into, but hard to get out of. It’s easier to dig a hole than to climb out of one – and the deeper the hole, the harder it is to see the light at the end. But no matter how insurmountable it may seem, fixing your credit isn’t impossible. There are proven measures you can take – such as consolidation, everyday choices and counseling – that will help you conquer your debt and keep it from getting out of hand again.

The law is on your side. It’s a dog eat dog world, especially when debts go unpaid. Even so, you have protected rights as an Australian citizen. Hearing said dogs at the door can be a stressful situation, but knowing the length of their leashes can give you the confidence you need to avoid being intimidated, deceived or taken advantage of by creditors and lenders.

Healthy credit is a lifestyle. Most consumers won’t give a second thought to their credit – until they wind up in over their heads hot water. While a stark wakeup call is just what some people need, the best practice is to develop a healthy self-awareness and make smart choices day-to-day. Think of it as a diet for your wallet – there’s no need to become a miserly scrooge, but arming yourself with simple credit common sense as you go out into the world can help you sidestep the binge and purge cycle of runaway credit.

This blog should not be taken as financial advice. We aren’t investment professionals or government agents. We are consumers, just like you, sharing our experience and creating a community of open information about money and finance. In this economy, knowledge is power, and that’s what we intend to give you. Along the way, you’ll learn:

• How to Fix Bad Credit
• The Basics of Consumer Credit Insurance
• How NOT to Get Screwed on a Debt Consolidation Loan
• The Differences Between Secured and Unsecured Debt
• And much more

So dive right in, anywhere you please. You’ll definitely have questions and we’ll do our best to help you find the answers. Together, we’ll turn credit and debt into an asset instead of a liability by making sense of the financial universe.

Introducing the Writers

Well actually, at the moment it’s just me – Jonathan. G’day! I’m a twenty-something student with a Diploma in Financial Services. And no, that doesn’t make me qualified to give financial advice, so take everything you read here with a massive grain of salt.