10 Traits of Debt-Free Families in Australia

Living debt-free in Australia

Some individuals and families on high incomes struggle to pay off debts, while those on lower incomes can chip down on debts quite easily and eventually become debt-free. Now, we gotta ask: how does that happen?

Everyone is unique but one common reason is that some people are in the habit of overspending. While their disposable income is higher than the Australian average, they are likely to spend beyond their weekly budget.

Debt-free families follow different traits. Characteristics show a strong commitment to the debt-free lifestyle and maintain it for the rest of their lives.

Australian debt-free living
Monthly budgets: This is how families work towards a debt-free living in Australia

Today we’re going to examine the typical behaviours we see in people are currently or on the pathway towards a 100% debt-free lifestyle.

Traits of debt-free families in Australia

1. These families lack materialism

People who are materialistic just love “stuff” – whether physical or one-time experiences. Easy access to lines of credit allows them to borrow up to their maximum to pay for holidays, new cars off the showroom floor and a house bigger than what they need.

On the other hand, someone who is determined to completely get out of debt knows that no amount of “stuff” can buy happiness. They’re not willing to fall into financial traps of instant gratification. Instead, they don’t want to buy happiness with money they don’t yet have.

2. They are ambitious towards their goals

Many people are surprised to see that, while they are chipping away at their debt, these same people are actually driven to achieve goals. They do want to reach a place where they can indeed enjoy the fruits of their labour, but without the overhanging burden that goes with it.

Debt-free families set goals on the dinner table that are attainable and realistic for the income they have. You’ll often find their plans on the kitchen fridge with input from their children. These aren’t just lofty dreams but is backed up with a strategy to get them to their financial destination.

3. These families have self-control

Instead of opportunistic shopping at the checkout, debt-free families across Australia opt to stick to their financial plans. It’s often difficult for them to bend or give in to temptations. In other words, you can discount a product up to 90% yet they’ll still walk right on past.

This self-control stacks on their existing traits of waiting, working and saving. These families know that buying stuff in the heat of the moment probably won’t make them feel better or erase their problems. Impulse purchases are the least-likeliest purchase to be made by someone with proper control over their spending habits.

4. You won’t see them buying into societies norms

For these Aussie debt-free families, they realize the truth: Debt isn’t a tool to get ahead. Claims such as “Always have a credit card for a rainy day” or “You must buy a car if it comes with cheap finance” isn’t something they’ll subscribe to, with the exception of HELP-debt repayments. The only norm that they’ll be into is “We are debt-free” and something that truly should be commended, as opposed to that luxury car on Instagram that will depreciate in value.

They know that car loans and credit cards aren’t needed to live peacefully in Australia. They’ll be more than happy to buy an affordable 2nd-hand car on the corner lot for cash, as opposed to that immaculate car on the dealership floor. For them, debt is like the rubbish that hasn’t been taken out for 3 days – they just NEED to get rid of it NOW.

5. Sacrifices are apart of everyday life

These Australian families know that eating out every night just isn’t sustainable. Instead, they opt to avoid expensive experiences in lieu for maintaining their debt-free lifestyle or working towards attaining it.

Do you want to know the best part? Once their debt is gone, those experiences can come back! These sacrifices only need to be temporary, since the future will bring the room in the weekly shopping budget for lavish experiences. They can do this without slamming it on the credit card and merely hoping they’ll have enough to clear it at the end of the month.

6. They give little care about the opinions of others

These people who strive for the debt-free lifestyle won’t really care what others think of them. They might be driving a used car, cook mostly at home and fly economy instead of premium classes, but they can sleep better at nighttime. In fact, you’ll see them very rarely on social media.

Keeping up with the Joneses has become a normal part of Australia’s culture, but why? Because we’ve followed the western norms of excessive spending habits in order to build a false narrative of success and achievement. Debt-free families care little about this, with their confidence built from knocking down their debts and living on cash.

7. These families are bargain-hungry

While not to be confused with overspenders who generally impulse buy, these debt-free families choose to use coupons, discounts and savings at their disposal. You’ll see them scour the internet for ways to get the best price for their products or even trawling Gumtree Australia for a used version which could save them hundreds.

For them, every dollar saved is a dollar made, tax-free! You’ll see them researching online for products that actually offer the best value for money, as opposed to the cheapest, including product life-cycles. These families are in all on their plan and bargain-hunting is often the starting point, and for many, a way they were already raised.

8. Side hustles are their pocket money

While they will have at least one full-time household income, these families have taken to the gig economy like a fat kid on a cupcake. Sites like Airtasker, Uber and Upwork offer them opportunities that 15 years ago didn’t really exist. You’ll find them sacrificing some of their weekends and evenings to earn additional bucks.

They’ll find every way to make extra dollars as they know how much this all counts. Even if it’s additional taxable income, they know they’ll be able to pay down their debts faster. Again, this is a temporary measure which they use to eliminate themselves from drowning from monthly repayments. At the very least, can help them afford luxuries without the burdens.

9. They’ve used debt consolidation to their advantage

During their journey towards a 100% debt-free lifestyle, they would have seen the opportunities for debt consolidation. These offers include a 0% credit card balance transfer or grouping multiple debts like personal loans and car loans together as one for reduced monthly repayments. Some people use these loans to then take out additional finance, but not these families!

Using debt consolidation allows them to potentially save thousands on interest repayments had they merely paid back their original debts the normal way. Once the new loan is established, their motivation is to knock off these liabilities faster with zero motivation to take out additional finance given the lowered interest rate they’ll likely receive.

10. They’re eager to learn more

These are the types to read financial books by people like Scott Pape. They want to learn more about how they can reduce or eliminate their debts completely, but without massive sacrifices to their lives. After all, they do want to have some comforts like fresh food and a reliable car to drive.

You’ll also see them consume YouTube content and spend time in Facebook groups. They’ll praise people who share success stories about how they got out of debt and love the strong community comradery. Learning more about debt reduction (without spending a fortune) is a normal trait for these people.

Keen to join thousands of Aussie debt-free people? It’s available!

Have a closer look at debt: It’s something that holds you back every single month, like a recurring burden that you don’t need. Like that person in school that you just didn’t like.

Essentially, you want to create a sense of patience, live simply and make some sacrifices. That’s the essence of debt-free families who live in Australia. They don’t need that new iPhone that just came out.

Living a debt-free lifestyle
Success at the debt-free community

It’s not easy, nor is it fast. Often it’s not even that exciting either, but they knew this. It takes work and if you have what it takes, we’d encourage you to do this. After years of work, you’ll look back and realize the vast progress that you’ve made, all from a decision that you started today.

Learn how to take control of your money before it takes control of you. You’ll be more confident and on the road towards financial freedom, through the knowledge and wisdom of others who have walked the path before.

Business Distress: Let us SAVE you!

Business distress Australia

If you’re suffering from business distress, then we can help. Read our guide here at The Debt Free Community. We’re business owners too and understand your issues.

Businesses require stable weekly cash flow in order to sustain them selves, let alone turn a good profit. The most common reason for a business fail is the lack of cash flow.

Business distress Australia

Let us run through some of the factors that might help you out. Through this, you can start implementing today to reduce the stress in your business.

Provide full transparency

It’s important to provide clear and concise information to stake holders. It needs to be up to date and relevant.

There needs to be a database of receipts and payments. This is best done through a solid accounting package. We recommend Xero though there are many out there.

Focus on constant measuring and monitoring. It will help both you and your stakeholders sleep better at night time. Indeed, this is a key towards long term success.

Reduce small spending

Opt for reducing cash flow wastage through finding greater value. This can really make an impact on your business budget, and thereby improve your cash flow.

Savings can include:

  • Reducing staff numbers if truly possible
  • Purchasing product or equipment in bulk
  • Selling off assets not being utilized currently
  • Reducing owner salary from their business
  • Asking for discounts from key suppliers

These savings whilst small can make a significant impact. In fact, the extra cash flow can be used towards scaling your business towards the profitable level.

Consider debt consolidation

If your business was founded on debt and has multiple loans, then consolidation is a good strategy. This step will likely improve your financial circumstances through reduced interest rates.

We can actually help with that. Our services have helped thousands of Australian business owners. If you’re wanting to breathe in business, then seek us out.

Get professional advice

We’re professional, but we’re friendly too. In fact, we’re very much community-minded. Our focus on relationship building first.

If you’re suffering business distress, then pick up the phone. Speak to a counselor, a financial advisor or your accountant. Regarding debt reduction matters – we can certainly help!

Business distress can be solved

We’ve helped thousands of Australians. Our advice is very helpful, and we can help you make improvements over the phone.

In fact, some business owners have moved more towards a profitable position through what we recommend. Our phone calls are totally free. We’re ready to help you right now.

Give us a call or simply get in touch. We’re happy and willing to speak to people all across Australia, especially those in business distress.

The Top 4 Debts to Avoid

debts to avoid Australia

Today we’ll be covering 4 of the top debts to avoid for Australians. We’re an advocate of being Debt Free in this community. It’s great that you’re here in this safe space!

Look – we understand. In the course of our lives, just about all of us are forced at one time or another to take some form of loan. This is to fund a home, car or just daily needs.

That said, it can lead to a pile up of debt for many people. It creeps up on you before you even realize it. Feels like you right now, yes? You’re not alone.

debts to avoid
Australian families should avoid debts wherever possible.

We’ll be covering the four types of debt that people need to avoid. Plus, we’ll even share ways to prevent taking out loans in the first place, so you can stop digging the bottomless pit that debt brings.

Credit Card Debt

This is Australia’s nightmare. Credit card debt consumes so many people, on so many fronts! It’s like an endless disease, permeating endlessly throughout society.

At least count, we owe more than $50 billion dollars. That’s extraordinary! Guess who’s winning? The banks.

Credit card debt promises luxury and an Instagram lifestyle with the tap of your card. It’s really that easy. Yet – so many people have spiraled into deep credit card debt.

These come with seriously high interest rates. This is because these debts aren’t secured. Credit cards are designed for those who love to spend money. Don’t be another victim, and consider starting the escape plan right now.

Car loan debt

This is the next one after credit cards. Australians love to own new cars, and often go into deep debt as a result just to impress their friends. The truth is – this comes at a price.

The car will be worth much less in 5 years, and you’ve paid more as a result through the loan. Ouch! Look – we get it, new cars do have more reliability. Often they’re better on fuel too. But the interest rates can often be high, making the car a huge liability.

We use the golden rule around here, direct from multi-millionaire friends. None of them got there by taking out car loans.

Their philosophy: A car should cost 5% of your net worth. If you’re worth a million dollars, then you can purchase a $50k car. You’ll be paying cash for that too. Puts things into perspective, yes? We hope we’ve woken you up.

Student loan debt

We’re very lucky here in Australia. The HELP system for university students allows our own students to study, then repay their loans once they start working.

These loans are done through the government and the interest is very minimal. In fact – it’s aligned with CPI.

That said, there’s some courses that simply don’t provide such help from our own governments. Some lenders have taken the opportunity to provide student loans to Australians with high interest rates. We recommend avoiding these wherever possible.

Medical debt

This is certainly the hardest debt to avoid. It’s hardly optional, and is based on unpredictability too. Insurance can certainly help here.

Australia does provide an excellent Medicare system to look after our own citizens. At the same time, it’s wise to save ‘rainy day’ money in your bank account. This can help offset minor medical expenses.

There’s not too many lenders offering medical loans in Australia. This is one debt that we’re actually alright with recommending, as long as you personally can justify it.

The WORST debt

Certainly the worst possible debts to avoid are those that you’re simply unable to pay back on time. Doesn’t matter the type – as long as you can repay.

If you’re struggling, then we can help you. Starting today, it’s time for this opportunity. We’ll hold your hand and help you through the process.

Get in touch today! We’re ready and waiting to help you on this new journey. We’re community-focused and understand your problems.

Stop Normalizing Debt & Live Debt Free

Stop Normalizing debt

Enough is enough – let’s stop normalizing debt. We’re super passionate about helping and guiding Australians to become debt free.

It’s super frustrating to see people normalizing debt, as if it’s something that we should all have, and somehow enjoy. It isn’t. Debt is nasty, like a hamster caught on the endless wheel.

Quite commonly, it leads you to falling into deeper debt. A constant cycle, like a hamster caught in a trap. Instead of simply taking out another loan, let’s help you with these tips to stop normalizing debt.

Stop Normalizing Debt
Wake up call: Many Australians are in SEVERE debt. Let’s get you out!

You can live debt free. You’ve just got to be willing to learn and apply. We’re also happy to help you!

Start your budget

Those that normalize debt are generally living beyond their means already. They’ll continue to use debt to fund their lifestyle, and quite commonly you’ll find their exotic lifestyles on Instagram.

Truth is: They’re only sliding deeper and deeper into debt. A cycle that is unlikely to be broken during their lifetime.

We recommend that you set a realistic budget. Having an ultimate savings goal in mind. The objective primarily is to pay off your debt before making your next big purchase.

Once you’ve got this goal in mind, you’ll know how much you have to live on, plus the time it will take to pay off your loan. You’ll be counting down the months (and then days) in no time!

Credit cards are NOT income sources

This is a habit that we’re optimistic about breaking. Using a credit card simply isn’t a new exciting income stream. It is, instead, a place of misery. Long term misery, which creates short term wins.

We understand that some people simply have credit cards as emergency funds, as opposed to income sources. We praise this, though we also praise having a solid amount of savings set aside more importantly.

Everyone recommends that you pay off your credit card in full at the end of every month. Absolutely – we’d agree. You don’t want interest, extra charges and (potential) late fees added.

Simply don’t use credit cards as a source of income. Ever. It’s the anti-path to the debt free lifestyle, and the opposite direction of what we discuss here within the community.

Justifying desires is flawed

Here’s another trap: thinking that something that you need is the same as something that you want. There’s a big difference actually.

A new pair of shoes? Sure. If you really need those. If it’s your 7th pair this year, then no. Pass on these desires, as such justification is fundamentally flawed.

Truly own your debt situation

Going towards the debt free lifestyle starts with the truth. If you’re in truth, and you’re happy to admit it – then great! It’s time to tackle this head on.

To begin, let’s start with:

  • Evaluating the nature of your debts (and how it happened)
  • Calculation of your total debts, both secured and unsecured
  • Begin an emergency money fund starting today (not a credit card)
  • Plan the next few years so you can find salvation without debt

This is where you’ll take full responsibility. You acknowledging a problem, instead of normalizing debt like everyone else. Do this if you actually want to OWN your life, as opposed to living on debt.

Stop normalizing debt: We can help

Are you struggling? Then we’re willing to help you. Starting today. Like, right now. Young and old, we’ve helped them all. People from all across Australia have been assisted through us.

We know it’s a little embarrassing. Yet we speak to people like you every single day. We’re advocating to stop normalizing debt.

We can stop the issues before they get bigger and worse. Let us help you – it’s what we’re here for. We can do this together.

Thousands of Australians have trusted us. We’re cool, and we believe in you. Let’s do this today!