With Job Keeper, Job Seeker and other government payments coming to an end soon, are you unsure how you’ll make things work? United Debt Assist can help.
This time last year, life may have looked very different. After months of lockdowns, some industries were fortunate enough to be able to work from home, however this wasn’t the case for everyone. Many Australians found themselves out of work and surviving financially off the COVID-19 stimulus packages, early release of superannuation or utilising their savings.
The Job Keeper Scheme came at a cost of $130 billion, keeping 835,000 businesses afloat and 5.5 million workers in a job. 1.4 million Australians are currently receiving the Job Seeker payment, previously known as New Start. In the next month the Job Keeper, Job Seeker and other government payments will continue to be reduced.
Employees on these payments who were working the equivalent of 20 hours a week or more during the governments reference periods in February or June are entitled to $1200.00 per fortnight, down from $1500.00 they were receiving prior to September.
Employees who worked less than 20 hours during the reference periods are now only entitled to $750 per fortnight – halving the previous payment they were receiving.
The stimulus package has ensured that the lives of many could continue as normal as possible, at such an uncertain time. Though with the further reductions to payments quickly approaching, many of us will have to restructure their finances.
What do you do if you’re unsure how you’ll make things work?
Whether you’re worried about bills, debt or a mortgage; there are options out there that may be of assistance.
There is a stigma around being “in debt”, that you can’t handle your finances, which isn’t always true. It can bring up feelings of shame and embarrassment and further encourage people to avoid the discussion. However, leaving your creditors to the rear of your mind can prolong an issue.
If you’re currently on a government payment, and managing to just get by, it may be a good time to start planning ahead. Adjusting to life on a reduced income can be daunting, and may seem impossible, but there is assistance out there.
How we can help.
At United Debt Assist we offer debt solutions to those have had unexpected life events affect their finances. Our experienced team can discuss your situation and tailor a plan to resolve this chapter in your money story. We are dedicated to showing people that there is a way out of the hole they may now have found themselves in. Whether you just want to talk your current situation through or are dealing with a more complex story – we may be able to assist.
The team at UDA specialise in negotiating with creditors on your behalf. If you’ve experienced a change in circumstances that has placed you in a worse financial situation than before, that is hardship.
Whether you have one account that you just cannot manage anymore, or multiple accounts that are adding up, we have options that may benefit you.
Informal Agreements are a mutually beneficial long-term arrangement that we organise between you and your creditor. We negotiate with the creditor to ensure the payment is manageable for you. Often, we can reduce the overall owing amount and even freeze interest for the duration of the payment arrangement. In addition, informal agreements are not listed on your credit report, therefore do not affect your ability to secure finance when you get back on your feet.
It is important to start preparing for the reductions in payments sooner rather than later, as the deferral plans that you may have currently put in place with your creditors are not a long-term solution.
We understand that being in a difficult time financially is often part of life. With debt mediation (also known as debt negotiation), we speak with your creditors with an aim to reduce your debts into one lump sum payment in as quickly as two weeks, for those who have access to a sum of money to clear the debt.
Debt mediation involves our specialist team at United Debt Assist negotiating with your creditors to reduce your debts overall amount. The negotiated debt amount is paid as a one-off lump sum, and the remaining balance of your debt is written off. This can help to restore your credit score, with existing defaults being updated to paid in full.
Debt Mediation can help if you
- Sold an asset
- Refinanced your home loan
- Inherited money
- Taken a loan from family or friends
- Have some savings, but not enough to get on top of your debts
How do I know which option is best for me?
Have an obligation free chat with a member of the team today and we can personalise the solution to your circumstances.