Call our Debt Helpline Toll Free on
Book next available Debt Expert

Get Out of Debt, Fast!

Never Use Your Superannuation to Pay Your Debt!

Never Use Your Superannuation to Pay Your Debt!

So many banks and debt collectors actively encourage people to access their superannuation, when actually it can spell dire consequences down the line if you don’t do your research.

What is a superannuation?

In layman’s terms, a superannuation is a regular payment that is made that will contribute towards your pension.

Maintaining a superannuation is actually beneficial for many people, especially those saving well for their retirement. Over 60s will expect to not pay back any of their taxes, which means well for when they’re ready to spend their remaining days with no added stress.

The only time you should access your superannuation early is for serious cases. Otherwise, the money should stay safe and protected from your creditors and the tax man.

Consequences

It costs the Federal Budget around $30 billion a year thanks to loopholes in the system. The main concern with superannuation is that the money is protected from creditors in bankruptcy. If you withdraw that money, it’s now available for creditors.

You can then lose the tax protection of superannuation. Generally, if you withdraw your super, you’re going to pay 31.5% tax on it. So not only was that money safe from creditors, but one third of it just evaporated into taxes.

Other options

There are other options to consider that don’t involve taking money from your super, which should only be done as a last resort. Below are three of the most common solutions you can take into account when researching the best options to combat debt.

Credit Counselling
This is something that can be considered in order to plan out repayments within your own means, working around your budget without feeling the pinch at the end of every month. Within this period you’re not allowed to use your credit card, but your credit score is not damaged during the process.

Debt Consolidation
Paying off multiple loans in one single payment is another option to consider. You will need to have a good credit score to be able to consider this option, but it is something that can be spoken about in a consultation at any time.

Debt Settlement
If successful, debt settlement can save you between 40 – 60% in the debt you owe back. However, there is the added risk that creditors might not accept your settlement offer, and can also be risky in terms of the refund amount you receive, which could land you in greater difficulties down the line.

It’s important to research all possible areas before considering an solution or method to combat your debt troubles.

Review

More and more people are getting into trouble because their expenses are greater than their income, something an injection of cash won’t fix. Superannuation is a way of saving money for your retirement, which is why it’ll be significantly less once you reach retirement age if you don’t research the best methods to pay off your debts.

It’s best to research other methods to ensure you’re paying off your debt in a small manageable increments each month.

The only time you should access your superannuation early is for serious cases. Otherwise, the money should stay safe and protected from your creditors and the tax man.

Call Debt Mediators today for a free consultation about the solutions we can offer you!

 

Struggling with more than $8,000 of unsecured debt? You could be eligible for debt relief! Discover how to stop debt collector calls, freeze interest and fees, reduce payments and only pay back what you can afford. Start now with a free savings estimate.

Get My Free Savings Estimate

Free Debt Analysis

Request your Free Savings Estimate today, and receive a tailored solution to regain control of your finances and get out debt fast.

Safe, Confidential and No Obligation Safe, Confidential and No Obligation

Norton Security