Home' Navy News : September 2nd 2010 Contents Finding it
hard to help
your people with
This film will help you.
Watch the video or order the DVD on the website
ADF Financial Services Consumer Council
September 2, 2010
IN THESE articles I often say the
training and discipline you receive
as ADF members can be trans-
ferred to your financial lives.
That is especially the case when it
comes to borrowing, whether it's your
home loan, car loan, credit card or
anything else where you owe money.
Getting into debt is easier than
getting out of it. So before you even
think about borrowing money, work
out how much you can afford to bor-
row, remembering that your financial
situation can change without warning.
As with anything you buy, it's smart
to know who and what you're deal-
ing with and always worth shopping
around for the best deal.
1. Work out if you can
afford to borrow
Before you borrow, use our budg-
et planner to see exactly where your
money goes now and how much you
could afford in repayments. Remember
to allow for interest rate rises and any-
thing that might affect your income in
the future (for example, starting a fam-
ily or home renovations).
2. Shop around for the
If you decide to borrow, take the
time to compare interest rates, prod-
uct features, fees and charges. Even
a small difference in the interest rate
can make a big difference to what you
have to repay.
It always pays to get a number
of quotes from a number of sources
before you make any decisions. And
make sure you understand the fine
print. If you don't understand some-
thing at first, be sure to ask lots of
questions until you do.
3. Know who and what
you're dealing with
Check that the person or organisa-
tion you're dealing with is registered
or licensed with ASIC. Make sure
you know what you're signing up for
before you go ahead. Check the terms
and conditions of any loan contract,
including penalties for missed repay-
ments or for paying off a loan early.
4. Keep up with your
Keep your repayments up-to-date
and make extra payments when you
can to save on interest, subject to the
conditions of your loan.
Try to pay off the entire amount
owing on your credit card each month.
If you can't pay it all off at once, come
up with a plan to pay it off within a
few months by setting aside money
directly from your pay.
Check for fees or charges if you're
thinking of transferring your credit
balance to another card, consolidating
your loans or refinancing.
5. Get help if you can't
pay your debts
It's important to act quickly if
you're having trouble making repay-
ments. Keep paying what you can
afford. Even though it can be difficult
to face the problem, ignoring it will
only make things worse. Contact your
credit provider without delay. There
are places you can go for help.
6. Complain if things go
Try to resolve any problem with
your credit provider or broker first. If
you aren't satisfied, take your com-
plaint to a free independent dispute
resolution scheme -- you can contact
the scheme your credit provider or
broker belongs to by calling 1300 780
808. You can also complain to ASIC
online at www.asic.gov.au or phone
ASIC's Infoline on 1300 300 630.
ASIC's role in credit and
On July 1 ASIC became the nation-
al regulator for consumer credit and
finance broking, taking over from the
States and Territories.
For more information about the
new regulatory framework including
the legislation, licensing process, gen-
eral obligations and the timeframe in
which the changes will take effect, go
For more information visit ASIC's consumer
and investor website, FIDO at www.
fido.gov.au or call 1300 300 630.
Email ASIC with topics that interest you:
STRINGS ATTACHED: Money always comes with accompanying obliga-
tions and conditions. Know your parameters, find the deal that suits you
best and understand what you're getting into.
Photo: LAC Aaron Curran
ASIC Chairman, Tony D'Alosio, advises how to get
the best outcome when taking out a loan.
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