News & articles

What is a Credit Default?

What is a Credit Default? Did you know that a payment default can make it difficult for you to secure credit?  It can make it difficult to obtain anything from a new mobile phone plan to getting approved for a home loan. A payment default is basically when you are behind in your repayments on…

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What is a Bad Credit Home Loan?

What is a bad credit home loan? A bad credit home loan is for borrowers that have had previous credit issues.  As outlined in the article on bad credit, the most common credit issues involve: Mortgage arrears, Defaults, Court judgements, summons and writs, and Bankruptcy and debt agreements Since there is a greater risk to…

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Debt Consolidation: Personal Loans & Credit Cards

Debt Consolidation – Credit Cards and Personal Loans Usually private debt has a higher interest rate because the debt isn’t secured against an asset.  For example, your credit card debt has no asset ‘securing it’ that a lender can sell should you default on the debt. Car loans are cheaper than credit cards because there…

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Intro to Bad Credit

A bank makes money by minimising risk.  They want to minimise the chance that any of their customers might default on their loan.  They don’t want to end up on ‘A Current Affair’ for selling a house from under a family of 4. Part of the bank credit assessment will be to look at your…

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Working Capital Finance

Intro to working capital finance Working capital finance provides businesses with funds to cover short-term needs, overcome cash flow constraints or take advantage of opportunities to grow the business that include but aren’t limited to: Managing cash flow Paying suppliers Wages Discounted stock/inventory Pay for larger orders to win a contract Working capital loans don’t…

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What is a Part 9 Debt Agreement?

What is a Part 9 Debt Agreement? You may be struggling with debt and finding it impossible to locate a lender willing to consolidate your debts.  You may be at a point where you are being continually harassed by your creditors.  There is a solution known as a debt agreement.  While it is considered an…

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What is a Low Doc Loan?

While being self-employed offers some great benefits, possibly one of the biggest drawbacks is how difficult it can be to obtain a home loan.  When applying for a home loan, you will generally need 1-2 payslips to verify your income and your capacity to repay the loan.  For a PAYG employee this will generally be…

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What is ATO Tax Debt & How to Fix it

What is ATO Tax Debt & How to Fix it During Covid, the ATO relaxed its stance on delayed or missing tax payments by Australian businesses. Unfortunately, many businesses are still facing ongoing difficulties due to reduced demand, shortage of staff and difficulties obtaining goods. With tax debts having reached an estimated $34 billion, the…

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What are Mortgage Arrears?

What are mortgage arrears Mortgage arrears are when you do not make the minimum monthly repayment on your home loan.  These include missed repayments as well as late or overdue repayments.   Late repayments vs Arrears A late repayment is one where you were late on making the repayment.  That is, you didn’t pay it…

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How Much Does Debt Actually Cost You?

How Much Does Debt Actually Cost You? For anyone that pays tax, there is a big difference between the price of non-deductible debt and the price of deductible debt.  It is vitally important to understand the differences and how they can affect your efforts to eliminate bad debt and create wealth. Think of the two…

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Refinance Your Mortgage To Own Your Home Sooner

Refinance Your Mortgage to Own Your Home Sooner Did you know the first few years of your home loan repayments are just paying off the interest?  You are barely reducing the balance.  However, refinancing can tip the scales in your favour. The reason for this is that a home loan operates like compounding interest in…

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