Emergency Fund

• Emergency Fund - savings that are put aside not for a specific goal, but just as a financial back-up.
• Situations that may require an emergency fund:

  • Medical emergencies
  • Appliance damage
  • Property damage
  • Loss of employment
  • Ongoing mortgage/rent
  • Paying for insurance and repairs
  • Car Insurance
• Strategies to get out of debt:

  • Understand how much money is owed
  • Get help if needed
  • Work out what can be afforded to pay
  • Prioritise bills and debt before paying off small debts first
  • After debt is managed, regularly save to avoid future money problems
• Proper steps to deal with financial difficulties:

  1. Seek professional advice (e.g from an account or financial advisor).
  2. Talk to creditors (negotiate change in payment, postponement of repossession, pay owed money and apply to defer payments).
  3. Debt Consolidation (combine loans and debts)
  4. Apply for Bankruptcy (last resort option if there are serious consequences)
  5. Seek financial counselling (can contact the Financial Counsellors Association of NSW).