Debt |
|
|
If you are struggling with debt, or think you might soon be unable to pay your debts, talk to your lender immediately.
Ask a financial counsellor for advice and start using a budget planner (xls, 268 KB).
If you cannot pay the debt
If you cannot pay your debts because of illness or unemployment, and think it would help to change your contract terms, apply to the lender to change your contract on the grounds of hardship. If the lender declines your application, you can apply to have the court decide whether to approve your application.
In Queensland you cannot go to jail because you cannot pay a civil debt. However, if the State Penalties Enforcement Registry is pursuing you for an unpaid fine, you can be jailed in certain circumstances.
What debt collectors can do
By law, if someone says that you owe them money, they can:
- write you a letter or ring you to demand payment
- take you to court to recover the money
- sell any property over which they already have a security interest (loan collateral) after giving you 30 days notice.
What debt collectors cannot do
Debt collectors cannot:
- have you sent to jail
- take any of your property over which they do not have a security interest, unless they have an order from the court
- threaten, physically intimidate or harass you
- visit you at a time and place that is unreasonable or substantially inconvenient
- visit you at home if there is another available and effective method of communication (such as phone).
Payment methods to be wary of
Be wary of offers to pay off your debts, often known as consolidation loans. The offer makes it easier in the short term to make one small payment. However, you end up paying much more over a longer period.
Also be wary of accessing your superannuation to pay off your debts. While this may fix your short-term problems, you could be disadvantaged in your retirement years.
Seek financial advice before accessing your superannuation.
Last reviewed 03/09/2009 |
 |  |  |
Other languages