According to statistics by the Insolvency and Trustee Service of Australia more than 4740 non-business bankrupts were under 35, accounting for more than a quarter of all such bankrupts nationally.
Further to this recent studies have shown that more than 25% of mortgage holders admitted to struggling to make loan repayments.
While many people like to blame the banks, it is often due to a lack of financial education.
Tony Devlin, the head of the Salvation Army’s Moneycare financial counseling service, related the lack financial education to giving a rifle to someone without teaching them the responsibility behind it.
Last month, Kixup – Online Budgeting, launched to help Australians better manage their finances by providing easy to use online personal budgeting software.
“Kixup allows users to forecast their cashflow, rather than focusing on what they have already spent” says CEO & Founder Andrew Frahm.
A lack of financial education not only affects Gen Y, with 40% of Generation X saying their financial situation had worsened in the past 12 months.
Andrew shares five tips to help you stay out of bankruptcy and reduce your debt:
1. Pay off your debt Fortnightly – Simply by paying your debt fortnightly instead of monthly you will save a lot in Interest, without even paying more.
2. Track your expenses for a month – Create a spreadsheet and track your expenses for one month, everything from the can of coke to paying your mortgage/rent. You will find unnecessary expenses to cut back on.
3. Add $25 to your fortnightly repayment – By adding as little as $25 to your now fortnightly repayments, you can shave years and thousands of dollars off your debt.
4. Speak to Your Bank – Talk to your bank if you are struggling, it is in their best interests to help you make your repayments. You will surprised at how often they are willing to help.
5. Be honest when applying for credit – Don’t try and cheat the system when applying for credit, it will always come back to haunt you.
For further information on how to better manage your personal finances, visit www.kixup.com.au