Dealing with the festive credit hangover

Woman on the phone discussing credit hangover

Who doesn’t like a bargain?  

Sales are always popular with consumers. Whether it be end of financial year, tax time or boxing day. These are booming times for businesses to offload items from their shelves and increase their bottom line. However, consumers should be aware that over-purchasing can lead to credit hangover in the future.

As we enter the festive (silly) season, more and more people rely on their credit facilities.

In recent years, Australians have been feeling the increasing pressure to have bigger, better, more lavish lifestyles. However, many people are finding themselves with a limited capacity to facilitate the costs associated. With school returning a few weeks after Christmas, these combined factors threaten to burst the financial belt of those who already have a lot on their plate.

But what happens after the silly season finishes?

The lingering credit hangover from such sales can often have a negative effect on the consumer’s finances. It can also impact their ability to maintain the repayments required by the credit provider. As life goes on, mortgages need to be paid, bills fall due, and the cycle begins again.

Consumers get caught up in sales and discount shopping, resulting in considerable credit card fees and interest.

Unfortunately, many Australians bury their head in the sand when it comes to proactively managing their finances. Some will only act when backed into a tight corner where there are very limited (if any) options available to them. This is where a great broker, working in conjunction with an effective mediation specialist, can step in and provide a strategy to move forward.

Debt mediation provides an alternative solution for clients who are looking to take back control of their finances.

By utilising debt mediation, dedicated brokers can assist clients who are otherwise dealing with unmanageable debt burdens. They can also ensure that these clients can secure the funding solution they need to move forward.

If you or your client would like to learn more about debt mediation and how we have assisted many clients in the past, please get in touch with us on the below details and have a chat with one of our specialists.

 

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