Blog Posts

How Does Debt Recycling Work? Benefits, Risks and Strategies

How Does Debt Recycling Work? Benefits, Risks and Strategies

What is Debt Recycling? Debt recycling is a financial strategy that converts non-tax-deductible debt, like a home mortgage, into tax-deductible debt linked to income-producing investments. This process aims to reduce overall debt, grow wealth, and improve tax efficiency. The income...

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How Long Does A Bad Credit Rating Last? Complete Guide

How Long Does A Bad Credit Rating Last? Complete Guide

Bad credit refers to a low credit score or a poor credit history, indicating to lenders that an individual may be at a higher risk for borrowing.This condition is typically the result of past financial behaviours like late payments, defaults, bankruptcy, or carrying high debt...

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How to pay off HECS Debt Earlier? Everything you need to know

How to pay off HECS Debt Earlier? Everything you need to know

HECS debt is an interest-free loan that is provided to students for higher education. It is also known as HELP or Higher Education Loan Programme. When you apply for this loan, the government of Australia will provide tuition fees directly to your institution. Once your repayment...

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Does bankruptcy clear tax debt in Australia?

Does bankruptcy clear tax debt in Australia?

Bankruptcy is a legal process in which the court makes solutions for individuals or businesses to get rid of debt. It can have several consequences and benefits. Bankruptcy is a complex process so always analyse the situation calmly, before taking any action. Bankruptcy is a final...

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What is Bankruptcy vs Insolvency?

What is Bankruptcy vs Insolvency?

Many people use the terms bankruptcy and insolvency interchangeably for referring to a person or a company that is unable to pay off debts. In Australia the words ‘bankrupt’ and insolvent’ are often used interchangeably and are taken to mean the same thing when referring to a person...

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Am I Responsible for My Spouse’s Debt in Australia

Am I Responsible for My Spouse’s Debt in Australia

Marriage is a commitment to your partner to stand by each other through all circumstances for the rest of your life. Managing your finances jointly as a couple can be challenging, particularly when your financial situation is not great and either of you carries significant debts as...

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How to Get a Personal Loan with Bad Credit

How to Get a Personal Loan with Bad Credit

If you have a below-average credit score, it can be challenging to secure a personal loan from traditional lenders, as they may view you as a high-risk borrower. However, it's important to note that having bad credit does not necessarily mean that obtaining a loan is impossible....

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How to Get a Car Loan with Bad Credit in Australia?

How to Get a Car Loan with Bad Credit in Australia?

If you have bad credit, getting new loans becomes more difficult. Conventional lenders, such as big financial institutions like banks, mostly reject applicants with poor credit histories. But this doesn’t mean that you won’t find any lender willing to lend you money. There are...

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Defaults vs Serious Credit Infringements – Complete Guide

Defaults vs Serious Credit Infringements – Complete Guide

Defaults and serious credit infringements both harm your credit history, signaling to lenders past financial struggles. Their presence on your credit report can hinder loan approvals, affect interest rates, and impact certain background checks. Both can impact your financial health...

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How Many People Have Bad Credit in Australia?

How Many People Have Bad Credit in Australia?

According to data released by the Reserve Bank of Australia (the RBA), as of the 31 August 2022 there were 13.17 million credit and charge card accounts and around 17.5 million credit and charge cards operating in Australia.  The average credit card balance in August 2022 was...

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What is Comprehensive Credit Reporting?

What is Comprehensive Credit Reporting?

When you apply for a loan or any other credit product, lenders check your ability to repay the loan before lending you money. Most lenders will check both your credit report and credit score, which allows them to determine your creditworthiness and the risk involved in giving you...

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How to remove a default from a credit file – Complete Guide

How to remove a default from a credit file – Complete Guide

In Australia, a default on your credit report can significantly impact your credit score and borrowing capabilities. A default occurs when you miss payment obligations like loans or utility bills. It can stay on your credit report for five years, making it challenging to obtain new...

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Everything You Need to Know About Bad Credit Payday Loans

Everything You Need to Know About Bad Credit Payday Loans

Applying for a payday loan is a quick and easy process. Many lenders deposit the funds into your account within a few hours after your application is approved. Some lenders even loan you money despite your bad credit history. But are these loans worth it and are there any risks...

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Does Bankruptcy Clear Tax Debt in Australia?

Does Bankruptcy Clear Tax Debt in Australia?

Filing for bankruptcy is often the last option you have if you are unable to repay your debts. When you declare bankruptcy, you are absolved from repaying most of your debts, allowing you to make a fresh start and manage your finances in a better way. Bankruptcy is an important...

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Can You Go to Jail for Bad Debt in Australia?

Can You Go to Jail for Bad Debt in Australia?

If you are struggling with managing your debts, you might be worried that missed repayments or your inability to pay off your debts might land you in jail. You will be relieved to know that you won't be incarcerated for failing to pay off your debts, irrespective of the loan type....

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How Long Does Credit Repair Take?

How Long Does Credit Repair Take?

If you've ever applied for credit or a loan, there will have a credit report. If you have a poor credit score or an error in your credit report, it may affect loans or credit you apply for, so it pays to try to fix it as soon as possible to reduce its potential side effects on your...

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How to Reduce Taxable Income in Australia?

How to Reduce Taxable Income in Australia?

I get it, even thinking about doing your tax return is intimidating for many. But if you know you’ve done the most you can to minimise how much tax you pay, and instead maximise how much of your hard-earned income stays in your own pocket, then at least you can feel a sense of...

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Are Bankruptcy Filings Public Records?

Are Bankruptcy Filings Public Records?

Filing for bankruptcy in Australia is a serious decision, and it is important that you are aware of the implications of declaring bankruptcy before you make it. Bankruptcy can have a significant impact on your financial situation for several years, however it could be a suitable...

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What is a Good Credit Score in Australia?

What is a Good Credit Score in Australia?

A credit score is a number that determines your creditworthiness, or the likelihood that you will pay back any money that you borrow. It helps lenders to make informed lending decisions based on the risk of lending you more money. The higher your score, the more reliable you’ll...

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The Effect of Afterpay and Zip Pay on Your Credit Score

The Effect of Afterpay and Zip Pay on Your Credit Score

How does BNPL affect your credit score? Buy Now, Pay Later (BNPL) services can impact your credit score in Australia in a couple of ways: Missed repayments: This is the biggest one.exclamation: If you miss payments on your BNPL accounts, providers with an Australian Credit Licence...

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What is a Mortgagee in Possession – And How Do I Handle It?

What is a Mortgagee in Possession – And How Do I Handle It?

If you have taken out a mortgage, you must know the repercussions of not making your due mortgage payments. A mortgagee in possession is one of the many unfavorable situations that you could face if you default on your mortgage payments. In this article, we will explain the...

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What Happens To HECS-HELP Debt Upon Your Death

What Happens To HECS-HELP Debt Upon Your Death

What Happens To HECS-HELP Debt Upon Your Death? A HECS-HELP loan (which you may also know as student debt) has eased the financial burden of attending university for thousands of Australians. In fact, according to the parliamentary library, more than 2.9 million Australians have an...

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Can I get finance if I have a bad credit score?

Can I get finance if I have a bad credit score?

With a recent report stating that almost 1 in 4 people in Australia having some form of an adverse listing on their credit report, it’s not surprising that we are commonly asked if someone can get approved for finance with a bad credit history. So, if this is something you have...

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Low interest rates – are they good or bad?

Low interest rates – are they good or bad?

A worldwide pandemic like COVID-19 will always dominate the news, however, there are many other hot topics that regularly make news headlines. In recent times think Olympics, elections, natural disasters, the royal family shenanigans – there is certainly no shortage of material for...

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Credit Repair And Debt Negotiation Industry Major Shake Up

Credit Repair And Debt Negotiation Industry Major Shake Up

In September 2020 the Australian Government announced its intention that companies offering debt management and credit reporting assistance will be required to hold an Australian Credit Licence. Treasury provided the below summary for the rationale behind this: “An element of the...

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What’s a financial plan, and why do you need one?

What’s a financial plan, and why do you need one?

Less than 20% of Australian's have a financial plan, yet it is reported that 63% of people with a written financial plan say they feel financially stable, compared to only 28% of those without a plan. Put simply, a financial plan is an overview of your goals and the steps you need...

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