When thinking of debt protection insurance Australia truckers often have one thing in mind– not a necessity. Up until they got injured from a road accident or got ill and already neck-deep in IOUs. It is a known fact that Australian truckies live from paycheck to paycheck with barely enough money to go into an emergency fund. With demands from household increases over time, so does household expenses and IOUs.
A truck driver can actually let go of the oppressive burden debts can bring. Think about freeing oneself from irritating phone calls and penalties, or of being able to sleep soundly at night knowing that you owe nothing to no one. So, how to free yourself from such burdens? To get you started on a debt-free path, here are some tried-and-tested moves to remember:
List down all the debts you owe. The first step to managing debts is to clearly see how much you owe. Create a spreadsheet with the name of the creditor, bank or financing company for your mortgage, bank for credit card, and so on, and indicate the amount of debt incurred starting from the biggest to the smallest. On another column, add stipulated monthly dues, including the due date. Make sure that this list is updated every month. When you missed a payment, add another column to note down penalty paid.
Always pay household bills on time. As mentioned, late payments will only make your debt balloon. Try missing two or three payments in a row and you can easily spot penalties. This is even more so for credit card payments as interest rate and penalties will make one’s debt shoot up. Try to come up with an “alarm” system like a smartphone schedule to remind you of monthly dues at least two or three days ahead of time.
Settle at least minimum payment for large debts. This may not immediately write-off your IOUs but it will keep it from growing. Try to come up instead of a bill payment schedule on a monthly basis. Pay the minimum amount and add a little to it. For example, if your credit card bill is set at $70, add $10 to $20 dollar extra to speed-up the process. Do make sure not to sacrifice other IOUs with this add-on repayment.
Make good use of cash bonuses or incentives to pay off debts. Decide beforehand which IOU to settle first. Choose to settle ones with high interest rates as these are the items costing you more money in the long run. Or you may completely settle a small debt so you can focus on the bigger ones the next time around. The idea is to put your bonus or incentives into good use.
Keep a reliable debt protection insurance Australia policy to guarantee debt repayment in the event of an emergency. Truck drivers are prone to injuries and ailments from health risks and road hazards. A few absences is all it takes for debts to balloon. With an emergency fund to fall back on, debt repayment will continues as usual while you recuperate.
From learning to manage your IOUs to obtaining a dependable debt protection insurance Australia truckies must first start somewhere to effectively turn their lives around. It should start at recognizing the signs that you, indeed, need to get out of debts muddy pit. Yes, the struggle can be tough and challenging. With the right mindset, however, enjoying a debt-free life can be had in no time.
Want to learn more about debt protection insurance Australia policy? Please enquire online or call our office number to learn more.