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Mortgage Refinance?

Considering Mortgage Refinance? Bad Debt and How To Get Help

If you are considering refinancing your loan because you are struggling to make repayments, call and speak to your bank as the first priority. If you are in financial trouble, you really should speak to your lender first.

In Australia, the major lenders and bank CEO’s declared recently that they could give a respite of up to a year to the debtors that have lost their jobs in the global financial crisis. Other alternatives could be to pay only the interest on the loan or lengthen the term of the mortgage.

Credit Cards

High interest rates on credit cards should be negotiated by asking for a lower rate or even getting it bundled into a personal loan. Get rid of that credit card and replace it with a debit card if you really need to pay your bills by card.

How to get Some Relief From Bills

Contact your creditor and ask for more flexible repayments. Sometimes you may be able to get help from the government. Go to in order to locate your local consumer relations contacts.


If you are swamped by tax debt, contact the Australian Taxation Office and ask for an extension on your payment schedule or even an annulment if you are experiencing serious financial hardship.

Go to ATO website or phone 13 11 42.

How to Apply for a StepUP Loan

The National Australia Bank & The Good Shepherd Youth and Family Service have put together a new product called the StepUP Loan, which you are eligible for if you receive Family Tax Benefit Part A or have a Health Care Card.  This will get you a loan (around $800 & $3000) which may be  used to buy furniture, use cars or computers.

3.99% interest is charged for the loan term and also the payments are very flexible.  Another benefit is that there are no charges or fess. For more information visit

Superannuation Access

When there is severe financial hardship, under some stringent situations, as in if you are about to lose your home, you are able to cash in part or all of your superannuation.  Visit for details.

Refinance your loans

See our article on Mortgage Refinancing

Is it worthwhile refinancing your mortgage? With the current financial climate and indications that interest rates may be on the slide, a lot of people from all economic groups are thinking that getting a newer better loan would be the best option.

Unfortunately, its not an easy choice. You need to ask yourself if you will save enough money on your re-payments to make up the costs of the re-finance.

You need to get independent financial advice to find out if you will get any benefits from doing this, or else it may very well place you in more debt by organising a mortgage refinance.

Last Resort – Bankruptcy

You can get relief from all of your debts by going bankrupt, but this is really the very last resort. This will usually mean that you are bankrupt of a period of 3 years. 

You will be very much restricted by what you can own, anything of real financial worth such as an inheritance will go straight to your creditors.

You will have to pay 50% of your income above $41,250 and more than this if you have dependants.  Another disadvantage is that you can’t have employment which requires the handling of and you will require permission from your trustee if you want to travel. If your require more information, visit

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