Dooley Blog

We all know how much we end up spending on the festive season.

We start with good intentions. We budget. We pay extra off the credit card or put extra aside in the savings account. But, it still happens. January arrives and your jaw drops when you read those lovely letters banks like to send us.

Here’s a few tips on stress-free holiday spending:-

1. December is the peak credit card spending period so try and limit what you use yours for.
2. Use cash if possible.
3. Pay money off your card through your spending period.
4. Check the interest rate on your credit card as on some cards, interest charges start accruing, possibly over 20%, if the balance is not returned to “0” by the due date.
5. Don’t change your spending habits chasing reward points.
6. If you can’t bring your card spending back under control by the due date, consider paying chunks of cash into it in the first few months of the new year.
7. Pay more than the minimum requirement, as paying the minimum will see you paying off Christmas well into the new year and beyond.
8. Enjoy – in moderation, and hope your gifts are just what the recipient was dreaming of.

Don't worry, we aren't going to use the dreaded 'budget' word. But what you do need to ask yourself is where is your money, what do you owe and are you guarantor for someone else?

It's an unfortunate fact that when something goes wrong and people need a solicitor, they often don't know what or where their assets and liabilities are – or even any knowledge (or recollection) of having signed documents as a guarantor! What's so wrong with that?
The bad news… a lot! If you become involved in a legal matter without knowing what your financial situation is you can find yourself in a more serious situation than anticipated, and this lack of knowledge hits you where it really hurts….YOUR POCKET as it can substantially increase the work involved and therefore your legal fees.

The good news… it's free to fix. All you have to do is a bit of financial housekeeping.

1. Find out what you have.

Become aware of what bank accounts you have – you might actually earn some interest consolidating some different accounts that you have bouncing around. This goes for superannuation too.

What other assets do you have? Are the benefits of those assets being maximised? Are your assets protected from future claims?

2. Find out what you owe.

When are these debts payable? Could you save money and angst by consolidating? Are you in danger of being sued for payments that you've forgotten about?

3. Are you risking your financial future for someone else?

If you are a guarantor for another person, you have undertaken a serious responsibility. A responsibility which could have serious implications for your future if that person were to default on payment arrangements.

While the news might not be all good, once you've run your assessment it will be a huge benefit to you to know your starting point and not have any issues lurking around that could cost you dearly; as the saying goes, prevention is easier, better and often cheaper than finding a cure..

Do you need to talk to us?