Got a debt problem? Join the club – so do many other Australians. Thankfully, there is a light at the end of the tunnel.

There are many reasons people fall into a cycle of debt, which, according to the ACCC’s money smart guidance on dealing with debt collectors, may include divorce, loss of employment or getting sick.

Regardless of the reason, it can be hard to see a clear solution to the financial situation.

While there are many strategies to start addressing your debt issues, a first step may be to crunch the numbers and plan.

Crunch the numbers.

Begin by listing all your debts – e.g. credit card, personal loan, car loan, etc. Then record how much you owe for each of those debts. Don’t guess. Check your online accounts or your most recent statements so you get the correct number.

According to Money Smart, your first step to getting into control of your finances is to work out what you owe (https://moneysmart.gov.au/managing-debt/get-debt-under-control).

This will help you understand the scale of the problem.

Next, you need to work out how much you can afford to pay towards your outstanding debts.

First, check your payslips to see how much after-tax income you’re earning each month. Second, check your bank statements and credit card statements to see how much money you’re spending each month.


When you crunch the numbers, you might discover you’re spending more than you’re earning. Or maybe you’re breaking even.

Either way, you need to figure out how you can maximise the amount of money coming in and minimise the amount of money going out. For example:

  • Higher income – get a second job or pick up extra shifts.
  • Lower expenses – cut down on some of your expenses such as eating out for dinner.

How much higher do you think you can get your income? How much lower do you think you can get your expenses?

Once you answer those questions, you can move on to the next step – writing down how much money each week or fortnight you can put towards paying off your debts.

Consider seeking professional help.

So now you know the size of your debt and how you can start to reduce it. You may consider setting up a Part 9 Debt Agreement or Part 10 Debt Agreement or declaring bankruptcy.

However, entering Debt Agreements and bankruptcy can have serious consequences, including being listed in the National Personal Insolvency Index (a public register) for 5 years.

We recommend that you consider seeking professional help. This may include contacting the National Debt helpline for free assistance on 1800 007 007.

Solve My Debt Now

Solve My Debt Now also provides a holistic debt relief solution that can be an alternative to immediate insolvency or bankruptcy.

  • Our debt relief solution aims to achieve any or all of the following outcomes for you:
  • Negotiating with creditors to reduce or waive your debt based on your current circumstances.
  • Negotiating with creditors to reduce or suspend your interest payments.
  • Where successful, avoid leaving a 5-year black mark on your credit file in contrast to the outcome of a part 9 debt agreement or bankruptcy filings.
  • Minimises your contact with creditors wherever possible.
  • Setting up payment plans with your creditors within your estimated budget to make paying back your debts manageable over time.

We Can Help You – Today

The Solve My Debt Now team are experienced, non-judgmental professionals who work hard to prepare tailored solutions for our clients. Book your FREE Consultation now and talk to one of our qualified SMDN Advocates to see if we can help.