Doug's dilemma

A regular reader, let's call him Doug, sent me this email, which I'd like to share with you. His plight is not necessarily typical but what put him into his predicament is something we all can be victims of - and that's a lack of planning.

Don't declare anything yet
Mate, the first bit of advice I will give you is slow down and don't rush into declaring yourself bankrupt. Fortunately, while you have made some mistakes, you are smart enough to go looking for help, so you have potential.

Talk to someone
The next thing I want you to do is go and get yourself some financial counselling. We all bag governments at times, but they actually do some useful things and the Department of Families, Communities Services and Indigenous Affairs (www.facsia.gov.au) has a financial counselling service.

Acting on your behalf
If someone has a loan, mortgage or credit card and is having difficulty maintaining repayments, the counsellor can assist in negotiating with creditors to reach an acceptable agreement. And they can even talk to government or non-government organisations on someone's behalf if they're stressed out about their situation.

Looking at your options
Doug, if you can't pay an outstanding bill, the counsellor can help you look at your options and give you objective advice. And, importantly, he or she will help you look at your bankruptcy proposal and will examine alternatives to this drastic step.

Working out a budget
Another valuable service these counsellors offer is to help people like you set up a budget so you can trade your way out of trouble and hopefully put you on a debt-free, or at least a sensible debt, path for the future.
They will also give you some finance management skills, which is something everyone needs.

Seeking new employment
Doug, the $9 an hour job has to go and I suggest you go job hunting. I reckon if you can show a potential employer how keen you are to be a great Dad who's financially responsible, they'll see you as someone they want to have on their team.

Doing a second job
Also, don't be afraid to have a second job, maybe working on the weekends or a couple of nights a week. In the old days, plenty of people worked a couple of jobs and the work ethic of putting in the long hours can be a powerful incentive for self-improvement.

When change is necessary
Doug, use this tough experience to change the ways you do things. Draw up a plan to improve your life, which may involve accessing self-improvement programs offered by governments, community groups or even religious organisations. Borrow or buy some self-improvement books - this will help with your career and wealth-building plans.

Become a better you
Create a YOU plan by looking at your strengths, weaknesses, opportunities and threats; try to eliminate weaknesses and threats to success and tap into your strengths.
Remember, you didn't plan to fail, you, like most of us, simply failed to plan. So, from now on, use plans to create a great life for you and your family.
Best of luck mate and contact us when you sort yourself out - I bet it won't be too long.

PS I've arranged with Centrelink for Doug to see a financial counsellor. If anyone needs the Centrelink number it's 132 300 (or visit www.centrelink.gov.au).

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