Managing debt can be a challenging task, but the first step towards achieving financial freedom is understanding exactly how much you owe. If you are based in Australia and want to find out all your debts, this comprehensive guide is for you. We will also provide tips on how to manage your debts effectively and take steps to pay them off.
Whether you're struggling to keep track of your debts or simply want to gain a better understanding of your financial situation, this guide will provide you with the information you need to get started. By following the steps outlined in this guide, you can take control of your finances and work towards a debt-free future.
1. Check Your Credit Report
One of the first things you can do to determine your debts is to check your credit report. In Australia, you are entitled to a free credit report once a year from each of the three credit reporting agencies: Equifax, Experian, and Illion.
Your credit report will show you all your open credit accounts, including credit cards, loans, and mortgages. It will also show you your payment history, any defaults or bankruptcies, and any inquiries that have been made into your credit history.
In addition to providing a comprehensive list of your debts, your credit report can help you understand how your borrowing behavior affects your credit score. Reviewing your credit report regularly and monitoring your credit score can improve your creditworthiness, such as paying your debts on time, reducing your credit card balances, and avoiding applying for too much credit at once.
2. Look for Statements from Lenders
To look for statements from lenders, check your mail and email inbox for any communications from lenders or creditors. Be sure to check both physical and digital mailboxes, as some lenders may send statements via email or online banking.
When you receive statements from lenders, review them carefully to ensure that the information is accurate and up-to-date. Make a note of the lender or creditor’s name, the outstanding balance, interest rate, and payment due date. This information will help you understand the scope of your debts and create a debt management plan.
If you don’t receive statements from all of your lenders, you can contact them directly to request a statement or to ask for information about your outstanding debts. Be sure to provide your personal information, such as your name, address, and account number, to help the lender locate your account.
3. Check Your Bank Statements
Checking your bank statements is another essential step in finding out all of your debts in Australia. Your bank statements provide a detailed record of your financial transactions, including any payments or charges related to your loans, credit cards, and other debts.
To review your bank statements, you can log into your online banking account or request a paper statement from your bank. Be sure to review all of your bank accounts to get a complete picture of your debts.
When reviewing your bank statements, look for any payments or charges related to your debts, including loan repayments, credit card payments, interest charges, and fees. Make a note of the lender or creditor’s name, the outstanding balance, interest rate, and payment due date. This information will help you understand the scope of your debts and create a debt management plan.
4. Use a Debt Consolidation Calculator
Using a debt consolidation calculator is a helpful tool to determine whether consolidating your debts is a good option for you. A debt consolidation calculator can help you compare the costs of multiple loans and credit cards, including their interest rates, fees, and repayment terms.
To use a debt consolidation calculator, you will need to gather information about all of your existing debts, including their outstanding balances, interest rates, and minimum monthly payments. You will also need to know the interest rate and fees for any new loan or credit card that you may be considering for debt consolidation.
If the calculator shows that you could save money and pay off your debts faster with a consolidated loan or credit card, you may want to consider applying for a consolidation loan or credit card. By comparing the costs of multiple loans and credit cards, you can determine whether consolidating your debts is a good option for you.
5. Seek Professional Help
Seeking professional help is an important step in finding out all of your debts in Australia. A financial advisor or debt counselor can provide you with expert guidance and advice on how to manage your debts effectively and create a plan to achieve your financial goals.
A financial advisor can help you assess your financial situation, including your income, expenses, assets, and debts. They can also help you identify areas where you may be overspending or could save money. Based on this information, they can provide you with a customized financial plan that takes into account your goals, risk tolerance, and financial situation.
A debt counselor can help you understand your debts and your options for managing them. They can help you negotiate with lenders and creditors to reduce your interest rates or create a repayment plan that works for your budget. They can also provide you with education and resources to help you improve your financial literacy and manage your money more effectively in the future.
Finding out all your debts is essential in managing your finances effectively. By starting with your credit report, checking your bank statements, looking for ideas from lenders, reviewing your bills and receipts, using a debt consolidation calculator, and seeking professional help, you can comprehensively understand your debts and create a plan to pay them off effectively.
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What is a credit report, and why is it important to check it?
A credit report is a document that shows your credit history, including your credit score, outstanding debts, and payment history. Checking your credit report is important because it can help you identify any errors or discrepancies that may be affecting your credit score. It can also help you get a complete picture of all of your debts and credit accounts.
How often should you check your credit report?
It’s a good idea to check your credit report at least once a year to ensure that the information is accurate and up-to-date. You may also want to check it more frequently if you’re applying for credit or loans, or if you suspect that there may be errors on your report.
What should you do if you find errors on your credit report?
If you find errors on your credit report, you should contact the credit reporting agency to report the issue and request a correction. You may also want to contact the lender or creditor that reported the inaccurate information to ensure that they update their records.
How can you find out all of your debts if you don’t have access to your credit report?
You can check your bank statements, review any statements from lenders or creditors, and contact lenders directly to request information about your outstanding debts.
What is a debt consolidation calculator, and how can it help you to manage your debts?
A debt consolidation calculator is a tool that helps you compare the costs of multiple loans and credit cards, including their interest rates, fees, and repayment terms. Using a debt consolidation calculator can help you determine whether consolidating your debts is a good option for you and can provide you with an estimate of how much you could save in interest and fees.