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With the start of the New Year, now is an ideal time to take stock of your finances for 2006.
Andrew Maitland, National Australia Bank (NAB) General Manager Cards and Personal Loans, said the weeks after Christmas-New Year period was the time of year when many people start to feel the pinch from Christmas indulgence.
"Credit and store card bills start to arrive and those store loans that were once 'interest-free' start to attract high rates of interest," Mr Maitland said.
"Now is a great time to take control of debt and find a smart solution to financial problems."
According to Mr Maitland one of the most popular options for taking control is to consolidate debts to one personal loan.
"Consolidating debts to one personal loan, such as the National Personal Loan, offers a structured way to take control and reduce debt over time without the temptation of new purchases.
"People who are considering this option should always take the time to shop around and find a competitive product that can meet their needs.
"When you are shopping around remember that, while finding a competitive variable or fixed interest rate is an important part of a personal loan there are other components to look out for.
"Always make sure that the loan agreement allows you to make lump sum payments or even pay off the loan early without incurring penalties, so you can save on interest and get out of debt sooner.
"If you are going to transfer debt to a personal loan then make sure you actually close down your old credit or store cards so you don't have additional temptation."
According to Mr Maitland the first step to taking control is to understand what debts cost each month.
"Making a list of everything you owe and then listing what the monthly repayment is for each bill can help you to better understand what your debts really costing you.
"NAB provides a number of great online tools that can help including a budget planner and loan calculator - visit www.nab.com.au - loan calculator
"What ever your situation you should always seek appropriate information and advice before making a decision."
For information about a National Personal Loan - visit your local NAB branch for advice or call 13 13 12.
Five steps to get your finances back on track in 2006:
1. Understand your financial situation - list all your debts and monthly repayments.
2. Shop around to find the best financial solution to help you take control of debt.
3. Be honest with yourself - if you consolidate debt in a personal loan then make sure you close down your old credit or store cards so you don't have additional temptation.
4. Take the time to understand the Terms and Conditions of potential products - for a personal loan make sure it allows you to pay off your debt early without incurring penalties.
5. Stick to your repayment plan and write a budget using the NAB's online budget planner to keep yourself on track.
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Media Note:
Free, broadcast-quality audio news grabs with NAB General Manager Cards & Personal Loans, Mr Andrew Maitland, are available now on www.mediagame.com.au. If you are not already a subscriber, you can subscribe instantly on the site.
For further media information, please contact:
Rebekah Miles, Corporate Affairs
National Australia Bank
03 8634 0692
0400 541 139
Please note: Information is current as at January 2006 and is subject to change. Applications for National Personal Loans are subject to NAB's standard credit assessment criteria.
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