Biting the bullet on financial advice

With economic turbulence seemingly all around these days, many consumers are juggling bills, worrying about debt or in some cases paying off one credit card with another, experts say.

But for those facing financial stress, it is vital that they "bite the bullet" and seek professional advice before the problem escalates and they risk losing control.

In a recent interview with the Blacktown Sun, Sandra Saker, a manager with financial advice and debt counselling service Moneycare, said many ordinary consumers face a "tsunami of debt" - but as long as the issues are acknowledged and addressed early on, they can often come to an arrangement with lenders that will give them the breathing space they need.

However, Mike Young of Lifeline Western Sydney added that while there are many reasons behind people falling into debt - such as relationship breakdown, unemployment or excessive use of credit - it is often the case that they have simply been enjoying a lifestyle they cannot afford and find themselves unable to accept they have essentially "lived a lie".

And while credit cards can be a handy financial tool, coming to rely on them can have serious consequences, he added.

"People don't realise that as soon as they start using credit cards to pay the mortgage repayments or pay living expenses they are in big trouble," he said.

The site has identified a number of "early warning signs" over debt, which include being on a second mobile phone provider, having three credit cards and perhaps applying for a forth, debt repayments not leaving anything over for essentials and a fear of checking the mail in case another bill has arrived.

In these circumstances, consumers should consider contacting a free debt advice service.

One option for those dealing with debt is using a personal loan for debt consolidation, as this replaces existing repayments with a single monthly amount.

Find and apply online for the best loan deals.

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