What are your Debts?

Some debts are more serious than others. Make a list of all the people and organisations you owe money to (they are called your 'creditors') noting what you owe each one. Sort out your priorities for repayment, remembering the largest debt is not necessarily the most serious. This list will help you:

Rent or Mortgage & Mortgage Relief Loans

If you get into arrears and don't do anything about it, you could be evicted. Even if you abandon your home, you will still owe the money. Tell your leasor or lender as early as possible if you are having difficulty paying and they will help you work out a payment plan. Enquire about a Mortgage Relief loan through the Department of Housing (see Useful Contacts).

A Mortgage Relief loan provides short-term assistance to people experiencing difficulties with their home loan repayments as a result of an unforeseen change in their circumstances. These changes may be due to unemployment, accident, illness or some other crisis and there are a number of conditions that need to be met.

Mortgage Relief is not a grant but a loan to be repaid in future and is available for short-term assistance. Applicants are encouraged to seek advice from a financial counsellor about other options to resolve long-term financial commitments.

Income tax

If you are self-employed and do not pay your income tax on time, the Australian Tax Office will charge interest on what you owe. Tell the Tax Office if you can't pay and ask for advice.

Court fines and court orders

Tell the court or your solicitor if you can't pay money that a court has ordered you to pay. If your circumstances have changed, the amounts might be reconsidered. Contact the State Penalties Enforcement Agency about:

· Payment in full
· Payment by instalments
· Conversion to a community service order.

A community service order allows you to work off the amount owed under supervision in an approved community service or agency.

Child Maintenance

Talk to the Child Support Agency if you are having difficulty with paying the amount you are supposed to for your children.

Gas, electricity, water and telephone
Contact your supplier quickly so you can negotiate payments you can afford.

Credit or Store Card

If you cannot even make the minimum monthly payments, stop using the card. Return it or cut it up, so that you can't use it. Then agree to a repayment plan.

Credit Agreements

If you are buying something on credit and can't keep up the payments, the store might be able to get a court order that allows them to take the goods back. Talk to them before that happens.

Loans

If you tell the lender you are having trouble making repayments, you may be able to get more time to pay. Be sure to ask the lender what this will cost you.