Debtors 'shouldn't ignore the problem'

Monday 20 September 2010

Article by Mozo

Consumers struggling with debts and loan repayments should tackle the problem head-on rather than hoping it will simply go away, it has been argued.

Personal finance specialists David and Libby Koch observed that many people who get into financial trouble try to hide and not ask for help.

However, they claimed that the first rule in coping with mounting debt is to contact creditors as soon as things become difficult and attempt to negotiate a compromise.

"Far too many people conceal their financial problems until the situation gets out of control," they wrote in a column for News Limited.

The pair also praised the work of non-profit organisations like CreditLine and the Financial Counsellors Associations, noting that they offer valuable advice for helping people overcome debt problems.

Such comments may interest Aussies looking to compare debit cards in search of the best debt-free spending options. According to a recent index by Westpac and Melbourne Institute, consumer sentiment has fallen from 119.2 in August to 113.2 this month despite the Reserve Bank's decision to keep interest rates on hold.

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