Recent research from credit reporting and debt collection agency, Dun & Bradstreet, has shown that consumer debt has risen to an all-time high, with Australians facing financial strain despite efforts to improve the economic front. Diana Mathew, of The Money Tree, says a few simple changes can combat the problem.
Dun & Bradstreet says referral debt amounts are at the highest level in almost five years, rising on average to above $1000.
Their research also shows that those with accounts in default, particularly utilities and telecommunications, will face further credit struggles as they default on other types of credit.
The findings show that debt values from utilities and telecommunications accounts referred for debt collection, have increased markedly over the past two years. Utilities debts have risen by 50 percent, while telecommunications debts have risen by 41 percent.
Diana Mathew uses a no-nonsense approach with her system in The Money Tree and espouses that these types of debts will not get out of hand with the adoption of her system.
She says there is a simple solution. “Householders need to put aside amounts for expected expenses and make regular payments. The bigger a debt becomes, the harder it is to pay off.” Mathew recommends paying $100 a month off utility bills, rather than waiting for a quarterly account.
“The philosophy behind regular payments is: should you lag in a particular payment it is better to be $100 behind rather than $300 shy.” She also says that there is a safety benefit to this in that the money is allocated.
“Unallocated cash causes wasted expenditure, which comes back to the old adage—don’t spend what you don’t have.”
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For more information on The Money Tree System, follow this link: http://www.mymoneytree.com.au/
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