The COVID-19 pandemic left many Australians in a terrible financial position. Millions of people worldwide watched their livelihoods crumple, finances get seriously stretched, relationships change, and spending habits shift dramatically as the economy took the full force of the pandemic.

However, as we now turn the corner and all get back into living in a post covid world, there are some positive steps you can take to get your finances in order and keep them that way.

If your finances, job, living situation or relationship took a bit of a hit during the pandemic, don’t stress because a bit of planning can help get you back on track and feeling more confident. The new financial year can be a great time to reassess your circumstances, whether it’s your living situation, budget, or overall goals.

We can help you by lowering your overall debt position on average by 30% (after fees are taken into account – see below) and lowering your repayments to your creditors, freeing up your money to put towards other important things in your life.

What does it cost to reduce my debt with Solve My Debt Now?

We love to be completely transparent with our clients, so you know exactly how our process works and what it costs.

The way we calculate your Solve My Debt Now payment plan is to find out your total debt owing (only debts you want us to work on of course!) and add 20% plus a $1500 case set up fee divided by weeks/fortnights of your 1–5-year payment plan with us. All our fees are disclosed in clause 12 of our Agreement.

What happens then – what’s your process?

Once you sign up, we start negotiations with your creditors and aim to do the following:

  • Reduce your debt (average 30-40% reduction).
  • Freeze, waive, or reduce your interest.
  • Negotiate with your creditors to provide you with affordable payment arrangements to pay off your debt that fit within your budget.
  • Provide an alternative to entering part 9 debt agreements or bankruptcy for you and your family.
  • We may investigate irresponsible lending to test the validity of your debt.

Once a debt reduction is achieved, we add our debt reduction fee of 25% of the difference we made to your debt amount. The beauty of our system is that you usually start by paying us less than what your creditors are currently demanding of you, so that takes some pressure off.

Overall, what will I save if sign up with Solve My Debt Now?

Overall, we are aiming for a 30-40% reduction in your debts.

Here are some other financial tips to a good life in a post covid world

Consider doing a deep dive into your finances and aim to make improvements

Even if you had a budget before, you may wish to think about creating a new post-COVID-19 budget – especially if your financial position has changed. There are a few tips you can employ to make a start on understanding how you might improve your budgeting.

For example, some of your expenses may have changed as a result of COVID-19. The NSW Government has announced additional funding for preschool in 2021, which is saving some families over $2,000 per child. If you are eligible for this, you might want to factor in how this impacts your planning for the financial year ahead.

Other expenses might be improved by examining your current debt position and repayments to your creditors. We can help with that.

Moneysmart has a great resource available on budget setting, and if you struggle with sticking to a budget, consider supporting your efforts with a budget app like Pocketbook or MoneyBrilliant.

Consider building an emergency fund

If a global pandemic has taught us anything, it’s that having a financial safety net can be extremely helpful in uncertain times – and there’s never a better time to start preparing for unexpected curve balls.

MoneySmart suggests that an emergency fund should contain at least three months’ worth of expenses  – and Moneysmart suggests that one way to start saving a financial buffer is in a high-interest savings account, that’s separate from any daily use accounts so that it can’t be easily dipped into for daily expenses. There are many other money-saving methods to consider as well.

For example, an automatic transfer could be set up to go directly into an emergency fund so that it’s growing slowly and there for when it’s needed. Any extra cash may also get deposited into your emergency fund in order for it to grow more quickly.

Of course, dealing with your debt position is a great way to put money into your pocket for your emergency fund!

COVID-19 may have thrown parts of your life into a spin, but the sooner you start taking control and setting personal and other financial goals, the more likely you’ll be able to carve out a secure and happy future. Consider the benefits of goal setting and planning around the start of the financial year and set yourself up for success in 2022!

Many first home buyers have been caught out by this news and feel cut off so they can’t keep up anymore. It’s out of their control.

We can help.

Call the Solve My Debt Now specialist team today on 1300 070 672 or email help@solvemydebtnow.com.au

Want to Solve Your Debt? Let us Help – Today

Book your FREE Consultation now and talk to one of our qualified SMDN Advocates that will help put you back on the road to financial freedom!