DON'T PANIC!

It may not be as bad as it seems but even if it is you may have a number of alternatives if you proceed systematically.

Work out a Budget Plan related to your pay period. If joint income received at differing periods relate it to your food shopping cycle. BE HONEST - write down what you (and your partner) are actually spending NOW.

Decide (jointly, if relevant)

• can basic living costs be decreased? How?
  
• priorities - need vs. wants
  
• can you increase your income?
  

Meanwhile if you have regular debt repayments you cannot meet in full or at all CONTACT THE CREDIT PROVIDER IMMEDIATELY and explain/negotiate. If you neglect to do this the credit provider may commence legal action.

If all efforts with the Budget Plan leave outgoings exceeding income CONTACT A FINANCIAL COUNSELLING SERVICE. Make an appointment to get independent advice regarding your options, which could be -

• additional ways to economise on your budget.
  
• offers of reduced payments to creditors - perhaps freezing of interest in
  case of hardship.
  
• disposing of some assets.
  

N.B Two options which should only be considered after seeking advice are :

• A Consolidating loan because this may add to rather than solve your problem in the long term if entered into without considering such things as additional/higher interest, loan establishment fees, security required by creditor, length of loan etc.
  
• Bankruptcy - a last resort. The financial counsellor will explain the conditions and how it will affect you in the future.
  

REMEMBER : IT IS NEVER TOO LATE TO SEEK ADVICE

DISCLAIMER The information provided in this information sheet is of a general nature only, and is not intended to be legal advice. There may be errors or inaccuracies or the information may not be completely up-to-date. Always check the information provided before relying on it. The information relates to consumer law in New South Wales, Australia.