Bankruptcy – a bad career move Tony, who was 20, gave up a dead-end job to take on a plumbing apprenticeship. But within a short time he was $25,000 in debt. The debt included money owed for traffic fines, a car accident, a mobile phone bill, two credit cards and a car loan. He was seriously thinking about going bankrupt when he visited his local financial counselling group for free, expert advice. The counsellor told him bankruptcy was a bad career move. It remained on the public record forever. It could affect his future. Tony has since cleared his fines and car loan with the help of his dad. The financial counsellor arranged for his other debts to be paid off in small weekly instalments. As his apprenticeship wages increase, Tony will eventually escape from the debt trap. Gambling away your future At first it seemed harmless enough. Abdul would go out on pay nights with his mates and play poker machines. Sometimes he won, often he lost. While his friends eventually grew bored with losing, Abdul became infatuated. He began gambling every night of the week. But there was a heavy price to pay. Because he was on a good wage, Abdul was able to obtain multiple credit cards. He used these to finance his gambling addiction. Of course, it had to end. His professional and private life was a mess. At only 22-years of age, he owed $50,000. He initially turned for help to a debt relief agency that advertised its services on TV. But despite paying $1000, they weren’t much use. He then looked to a financial counsellor for guidance. Abdul was honest about his gambling problems and he took decisive steps to overcome it. He placed a warning on his Credit Reference report. That stopped him from getting further credit. He then banned himself from the club. If Abdul stays on the straight and narrow, he should be debt free within three years. Sexually transmitted debt When Jasmine moved into a flat with Troy she was deliriously happy. But Troy was a ‘user’. He encouraged Jasmine to take out loans to buy a car and stereo equipment. He didn’t pay telephone and electricity bills, either. And he was a big gambler. The relationship collapsed under a mountain of debt. Troy left, taking the car with him. Alone, Jasmine had to face the debt collectors. But with help from a financial counsellor, Jasmine slowly regained financial control. It was hard. She has since vowed never again to get a loan with someone else. Planning pays Alisha, who was 22, came from a poor background. Her parents had been on social services for most of their lives and she had never received any guidance on money management. But Alisha was bright. She had a job in the public service and lived in a granny flat close to work that cost her $150 a week. Oddly enough, her lack of financial skills came into focus when her cat got sick. Little problems can often get out of control. Alisha suddenly found she owed the vet $320. Because she had failed to put money away for a rainy day, she was in dire straits. She couldn’t pay her phone bill and her life was beginning to unravel. Alisha approached a financial counsellor for guidance. The counsellor prepared a money plan for her and Alisha has stuck with it. Life has never looked so good. These are real cases from the files of the Ryde/Eastwood Financial Counselling Service. Names and circumstances have been altered.