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Credit, loans & debt. A guide to staying out of trouble when you borrow money. Produced by Moneysmart.gov.au distributed by Naritas.com.au

Credit, loans and debt Stay out of trouble when you borrow money
About ASIC The Australian Securities and Investments Commission  ASIC  regulates financial advice and financial products  ...
In this booklet Credit and you   4  Work out if you can afford to borrow   12  Shop around for the best deal   16  Know wh...
Credit and you    Lots of my friends have computer games, laptops, iPods and that kind of thing. My parents say we can   t...
Your guide to credit words Credit XX  This means borrowing money that is paid back over time with an extra charge  either ...
Six steps to smarter borrowing Step 1. Work out if you can afford to borrow Before you borrow, use our budget planner at m...
Step 4. Keep up with your repayments Keep your repayments up-to-date and make extra payments when you can to save on inter...
Your credit report If you   ve ever applied for credit or a loan  whether or not you went ahead , you   ll usually be list...
What   s changing in your credit report Repayment history Information about your repayment history is being collated from ...
Case study Jin had a personal loan with a bank. Even though he   d been meeting all his repayments, he got a default notic...
Checking your credit report    Check with the credit reporting agencies to see if you are listed with them  see    Find ou...
Step 1 Work out if you can afford to borrow    I   m now paying a good deal more for food and petrol than I planned for wh...
Before you borrow If you   re thinking about borrowing money, ask yourself these questions. What am I borrowing money for ...
Case study Indira couldn   t afford a new washing machine when her old one broke down, so she was doing the family   s was...
Find out more Use our budget planner and loan calculators at moneysmart.gov.au to work out what you   re spending now, how...
Step 2 Shop around for the best deal Mel was worried about how she was going to pay her rent, which was due the next day. ...
Quick tip People in financial difficulty often end up with high-cost loans or credit. They might not be eligible for other...
Comparing credit and loans If you are shopping around for a credit card, get a    key facts sheet    from the card issuer ...
Examples of interest rates  XX  Home loan variable rate  4.29   7.45   XX  Personal loan secured over car  5.99   17.75   ...
Small amount credit contracts Characteristics XX  not a continuing credit contract  XX  the credit provider is not an ADI ...
Fees and charges Fees and charges can add a lot to the cost of borrowing. So make sure you know what these are before you ...
Type of credit  Examples of fees and charges  Credit cards or store cards  XX  a   nnual account fees  XX  fees to use rew...
Case study  Jie and Ming save  100,000 on their home loan Jie  and  Ming saved up a deposit of around  70,000 to buy a two...
How Jie and Ming saved money on their home loan It takes them 25 years to pay off the loan   800,000  They pay  390,000 in...
Step 3 Know who and what you   re dealing with Case study Brian was worried when his fridge broke down. He couldn   t affo...
Find out more To find out if a credit provider or broker is licensed, go to moneysmart.gov.au. Some businesses that provid...
If you have a complaint that you can   t resolve with your credit provider or broker, you can take it to a free independen...
Consumer credit insurance Consumer credit insurance  CCI  covers you if you can   t meet the repayments on your credit car...
Step 4 Keep up with your repayments    I sometimes use my credit card when I   m shopping or caught without cash. But I   ...
Take a quick credit quiz Yes No       you only pay off the minimum balance on your Do credit cards         you need to use...
How  1,000 on your credit card turns into an 11-year loan Let   s assume you   ve run up  1,000 on your credit card and yo...
Find out more Get tips on paying off your credit card faster at moneysmart.gov.au. Use our budget planner and credit card ...
Case study David and Carole were delighted with their new home. But four years after buying it, David was made redundant. ...
Consolidating loans or refinancing If you have a problem managing your repayments, rolling all your loans together into a ...
Step 5 Get help if you can   t pay your debts    A lot of people come to us who   ve never had financial problems before. ...
Find out more Contact your service provider if you   re having trouble paying a water, phone, gas or electricity bill. Mos...
Case study Steve and Nicky have two children, aged two and five. Recently Steve   s carpentry business has been slow and t...
Free financial counselling Financial counselling is a free service offered by community organisations, community legal cen...
Dealing with debt collectors A debt collector is a person who collects debts in the course of a business. This could be th...
What happens if you go bankrupt  If you think you won   t be able to repay your debts, you can apply for bankruptcy. Bankr...
Step 6 Complain if things go wrong Even with the best intentions, things can go wrong. If you have a complaint about a cre...
Quick tips Keep these tips in mind when you   re shopping around for a credit product. The type of credit product you appl...
Personal loans  e.g. a car loan  How they work You borrow an amount of money which you agree to repay within a certain per...
Find out more at moneysmart.gov.au If you want to know more about how to compare credit cards, car loans, rent to buy prod...
Home loans or residential investment loans     mortgages     How they work You borrow the money to buy a house. Your lende...
To find out more Australian Securities and Investments Commission  ASIC  ASIC   s MoneySmart website has calculators, tool...
Financial Ombudsman Service  FOS  Independent dispute resolution scheme for the financial services industry. fos.org.au or...
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