https://www.qms.space/ News en-US hourly 1 http://wordpress.org/?v=3.5.1 Debt Fix Survey – How People Deal With Debt https://www.qms.space/blog/article/debt-fix-survey-how-people-deal-with-debt.html 14 November 2017, 12:36 pm Debt Fix conducted a survey and of the 1745 respondents, 70% either agree or strongly agree that they are concerned about their financial security. Our survey recorded 1085 female and 679 male respond...

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Debt Fix conducted a survey and of the 1745 respondents, 70% either agree or strongly agree that they are concerned about their financial security. Our survey recorded 1085 female and 679 male respondents.

The majority of respondents revealed that their indebtedness ranged between $25k and $50k over credit cards, personal loans and short term (high interest) finance. Whilst the survey may not have drawn a direct link between the two, it does appear more than coincidental.

It’s reasonable to conclude that indebtedness (relative to income levels) is one of the main drivers when it comes to the way people feel about their future financial prospects.

Personal Information

Of those surveyed, around 26% were earning between $50k - $76k and 25% were earning under $25k. The majority of individuals i.e. 37% earned only $25k - $49K a year. Finally, 7% of individuals surveyed earned over $76-$100K a year.

The Kind of Debts

22% of all our survey respondents have debt totaling an amount between $25k-$50k; proving to be within the average for household debt. Successively 19% of respondents have a debt between $5k-$10k. Almost 63% of all respondents had debts due to personal loans. The runner up cause of debt with 54% was credit cards, followed by 53% of respondents with debt caused from short term cash loans.

The Debt Survey

Based on the responses from this survey, it’s apparent that debt can happen to anyone regardless of their income or age. More than 42% of respondents have agreed or strongly agreed when asked if they consider all possible outcomes before making a decision.

Logic dictates that if income doesn’t increase proportionately with debt levels, at some juncture the adequate servicing of that debt will suffer.

At this juncture, the debtor is forced to take action unless they risk the situation worsening.

There are two essential parts to the debtor regaining control of their situation. In the first instance, the debt repayments need to come under control / be conditioned to meet the debtor’s circumstances. Secondly, the debtor’s income must be reliable.

Once these two factors are met, a debtor stands a reasonable chance of getting on top of their debts and subsequently looking forward to a debt free future, free of financial anxiety.

On the bright side, 62% of people were willing to sacrifice immediate happiness or wellbeing in order to achieve a successful outcome in the future. Having this attitude is the first step to seeking assistance, budgeting, paying off debt and regaining financial control of your life.

Are You Struggling To Pay Off Your Debt?

At Debt Fix we help you get the debt relief you need. We help countless Debt Fix has helped thousands of Australian households regain financial control by creating individually tailored plans. If you struggling to deal with debt, our debt professionals at Debt Fix is here to help you overcome it. Please don’t hesitate to contact Debt fix now on 1300 332 834 for an obligation free assessment to find an effective debt management solution for you and your family.

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Why Not Take The Personal Debt Survey Yourself!


Personal Debt Survey

Whether it’s to lower your monthly payments, or needing a little extra for that next big purchase, Debt Fix can get you the help you need.

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Paying Off Debt vs. Saving for Emergencies https://www.qms.space/blog/article/paying-off-debt-vs-saving-for-emergencies.html 15 September 2017, 11:19 am It is often hard to choose between paying off a debt and saving for emergencies. This brings us to the age old question – “Should I save up or pay off my debts first?” To answer this question, let’s l...

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It is often hard to choose between paying off a debt and saving for emergencies. This brings us to the age old question – “Should I save up or pay off my debts first?” To answer this question, let’s look at the pros of both sides of the argument.

In Favour Of Paying Off Debt

Paying off debt before you start saving can be a great option to those looking to pay off their debts faster and have less accumulated interest. Further, the interest that you are avoiding on debt is probably much higher than the interest you would earn on savings. This means that you will probably have more money in total if you pay off your debt first and then start to build up savings second. But of course, this is not the case if you don’t stay out of debt once you pay it off. Also, if an emergency occurs while you are focusing on paying off your debt; it may force you into deeper debt by taking out an emergency loan.

In Favour of Saving for Emergencies

The main argument for saving for an emergency is that having savings allows you to break the cycle of debt. For example, if your car breaks down or your roof starts to leak; you won’t be forced into relying on your credit card to pay for it. Instead, you will have your emergency funds to fall back on. At Debt Fix we recommend that you get into the habit of saving at least 10%-20% of your income each time you get paid. This aligns with the ‘pay yourself first’ thinking and allows you to gradually save up for emergencies over time.

Our Verdict

At Debt Fix, we believe that a mix between the two strategies is the best in the long run. First, it is important to have a small amount of savings, to begin with, so that you can always have something to fall back on. Then, try to pay off your debts as fast as possible while still maintaining the 10% savings from each pay. You can never know when or if an emergency will occur, so all you can do is plan and be prepared for when they do occur. Ultimately, to gain financial freedom in the long run you need to work on both eliminating debt and saving for emergencies simultaneously. Striking a balance between saving and paying off your debt will put you in a good mindset for the future.

If you are unsure on how to reach the perfect balance for saving while paying off your debts, you may want to think of debt consolidation options to consolidate all your loans together. On the other hand, if you are thinking of taking out an emergency loan it may be a good idea to speak to a debt professional to make sure you will be able to pay it off in the long run. If you need any help managing your debts, please don't hesitate to contact our specialists on 1300 332 834 or leave an inquiry for more information.

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