see also..bad credit
Budgeting
If you haven't already start drawing up a budget. You will need to work out how much money you are spending, and on what. Ensure you include everything down to that cup of coffee you buy each morning. Gather all your bills together to find out what your other expenses are, know your income and start drawing up a budget.
Sure, at first it seems like a chore, but it is a great and powerful feeling being in control of your finances. If it is beyond you there are plenty of financial councellors and advisors, although be sure of the fees charged for services.
Useful budgeting resources online
The Commonwealth Bank provides a useful online budget planner and the Australian Securities and Investment Commision site you can find a excel budget spreadsheet download
Basic tips for managing credit-debt
Pay your debt obligations on time, every time. Send payments at least 2-3 days before the due date to ensure that your payment arrives on time.
If you are going to be late with your payment, call your creditor immediately. Explain your situation. Most creditors will make notation to your account to avoid late fees.
If you don't have enough money to make payment for the month, suggest to your creditor that you can pay perhaps half the payment now and the rest next month. If unemployment, divorce, sickness, etc., puts you in a situation where you need to suspend payments, discuss your situation with the creditor. Many creditors have deferment plans for financial hardships.
The key point is contacting and working with your creditor.
Never assume that your creditors are going to "walk away" from your debt obligations. You want to avoid having your account sent to collections. Creditors will be happy to work with you if you make a honest attempt to resolve your situation. And also be sure to keep to any arrangements made.
Keep and maintain all records when speaking with your creditor. Note the date and time, the person's name with whom you are speaking with, the issue that you called about, and the recommendation the creditor offered. Request a confirmation or other ID number that proves that you spoke with your creditor.
Debt & Credit management success depends upon correct management of your debt to income ratio and living within your means.