Money Matters of the Heart

[emmaofbrisbane]

Hi all,

I'm sure most of us have to deal with some kind of money matter in our relationships and families.

I, myself, have been totally consumed, at times, with concern as to my options or lack of options when it comes to money matters.

However, believe me when I tell you, thorough research on any of your money matters should be your fundamental principle. This lesson I learned personally.

My personal money matter of the heart had a lot to do with bankruptcy and what would happen to me and my family, if I actually did decide to file bankruptcy.

I was surprised at the many misconceptions I had regarding bankruptcy.

I found an interesting article on bankruptcy, www.foxsymes.com.au/bankruptcy.htm.

After reading this article, I was more certain than ever that I did not want to use bankruptcy as an option.

What about you, what is your money matter of the heart.

[danw]

When I had an IT business that failed in 2000 I too looked at bankruptcy as I personally owed about $200,000. The thing that put me off it most was not being able to travel. So I did nothing and instead invited creditors to do what they wished to do and ultimately all I ended up with was a terrible credit record, surprisingly none of the creditors sought to bankrupt me.

Now 7 years on my credit rating is almost back to normal but the one thing I learned was to live a credit-free lifestyle, it's so much easier!

[emmaofbrisbane]

When I had an IT business that failed in 2000 I too looked at bankruptcy as I personally owed about $200,000. The thing that put me off it most was not being able to travel. So I did nothing and instead invited creditors to do what they wished to do and ultimately all I ended up with was a terrible credit record, surprisingly none of the creditors sought to bankrupt me.

Now 7 years on my credit rating is almost back to normal but the one thing I learned was to live a credit-free lifestyle, it's so much easier!

Hi danw,

The thought of doing exactly what you described has crossed my mind, more often than I care to admit.

However, I sure am glad to hear the point of view from your experience. At least, now, I have an idea of the consequences I can expect to face should I choose this option as my way out of my most stressful situation.:eek:

[emmaofbrisbane]

After danw's comment, I really started digging for information. I am not dead set on avoiding the same mistake.

For anyone else keeping an eye on this thread, I thought I would share another article I found that focuses on managing credit card debt, http://www.foxsymes.com.au/ccards.htm.

This is currently my family's problem area. I found it to be very practical. It had some nice tips and pointers on how to manage and reduce credit card debt.

[danw]

Someone has already said that it would be a good idea to steer away from Fox Symes and debt management companies and I think that that's a very good idea. Most of what you need to do is pretty much common sense.

For money tips the Fido website is great http://fido.asic.gov.au/fido/fido.nsf/byHeadline/Credit

The first thing you need to do is budget and watch the pennies - i.e. no more holidays to the Caribbean eh?

[emmaofbrisbane]

Someone has already said that it would be a good idea to steer away from Fox Symes and debt management companies and I think that that's a very good idea. Most of what you need to do is pretty much common sense.

For money tips the Fido website is great http://fido.asic.gov.au/fido/fido.nsf/byHeadline/Credit

The first thing you need to do is budget and watch the pennies - i.e. no more holidays to the Caribbean eh?

Thanks for the link. I will check it out.

I do understand your point about establishing a budget and reducing the spending as much as possible.

But with my family's reduced income, there are times where our credit cards seem to be the only option available at that time.

It's not an immediate fix and requires much discipline. But, considering what you've said, it appears to be highly effective.

I am in research mode and don't want to leave any stone unturned.

Hopefully, one day, I will get it together like you.

Thanks again.

[taylor-dayne]

good for you danw - that's gotta be a really hard thing to go through.

[oliveoil]

Geez, I hope I'm not too late replying to this one. Don't go near FoxSymes (they are being investigated by the regulators).

You are up in Brisbane? Google "Brisbane financial counsellor". Financial Counsellors are government funded and offer a free and confidential service to the community. They assist those experiencing difficulties with their debts. Bankruptcy isn't all that bad. Of course FoxSymes would say it is because if you bankrupt there is no need to use their expensive and somewhat useless service!

[gandolf69]

I'm in business myself and seriously bankruptcy isnt a option. Heres why.

The thought of owing so much money to others would bother me for ages.

The thought of not being able to travel for 5 years

The thought of people trying to hunt me down

The thoughts of how could i be so stupid when i know most things about small business operations in regard to break evens , business plans etc.

All up i see divorce and bankrupcy as the same ,, A EASY FIX FOR A SITUATION THAT SHOULD NEVER HAPPENDED IN THE FIRST PLACE.

[robbie]

I'm in business myself and seriously bankruptcy isnt a option. Heres why.

The thought of owing so much money to others would bother me for ages.

The thought of not being able to travel for 5 years

The thought of people trying to hunt me down

The thoughts of how could i be so stupid when i know most things about small business operations in regard to break evens , business plans etc.

All up i see divorce and bankrupcy as the same ,, A EASY FIX FOR A SITUATION THAT SHOULD NEVER HAPPENDED IN THE FIRST PLACE.

Gandalf, somethings cannot be helped. So are you suggesting the fix being don't do it to begin with? You could say the same for love and relationships and I would disagree. You have to be in it to win it. You have to make mistakes on the road to success.

Look at the Aussie Home Loans dude .. he was bankrupt 15 years ago from failed banking businesses yet got back on the horse, borrowed $10K off a friend and is now one of the wealthiest men in Australia.

And Fox Symes isn't so bad.. I have 2 friends gone down that path.. not bankruptcy but some type of X agreement that has helped them successfully get out of financial ruin.

[Anthony Mahera]

Coming from a banking perspective (with 6 years experiance in business management and finance) one of the main things people forget when starting a business is a FULL BUSINESS PLAN! This is the most essential piece of research your business could have. 99% of new business that come to see me don't have this and they wonder why they go belly up over the following couple of years. Business plans should include everything from small expences to the parking if your in retail. When I mean everything, I mean EVERYTHING. Without a good full business plan your not going to get anywhere espcially in such a competative market such as Sydney.

Secondly..................what ever you do.............DO NOT GO BANKRUPT or put yourself in a position where you could become bankrupt. Believe me this will put a down turn on your future lending even past the 7 year bracket especially if you want to lend with the same institution that lent you the money in the first place.

Don't take on business that you can not handle. When people see business they see dollars signs without realising that your company may not have the capasity to handle all the incoming business. Steady business growth over a couple of years is usually best.

Make sure ALL financials are up to date!!!!!!!!!!!!!

If your starting a new business it would not hurt to go see a business coach.............there are hundreds on the internet and it will benefit you and your business in the long run.