Absolutely self-inflicted money mismanagement!!!
2 year old had surgery, I had surgery and I needed a crown. Car accident - write off, insurance wasn't enough to cover a new car. Essentially what I'm saying is, that a series of bad events caused a credit card blow out.
I've sold shares (staff shares I had from 10 years ago). Used money bequeathed to my son by my grandfather.
I don't qualify for accessing superannuation under financial hardship guidelines (not on any Centrelink benefits) and I don't fit neatly into the ATO guidelines for Compassionate grounds - as I have technically paid the accounts.
I am 42 and have 215k in superannuation, which is above government recommendations for where I should be at this age.
What options do I have? I'm fairly certain my husband and I are at our maximum borrowing capacity. So borrowing against the equity in our home isn't an option.
4 Replies
Downsize your home or just get a budget together and pay down your debt as quick as possible. Unless you win the lotto there isn’t much more you can do.
Unfortunately your scenario doesn't sound as though it will meet requirements to access your super. You need to start paying down your credit card and other debts. Redo your budget, cut back, renegotiate all plans/insurances you're on and get rid of unnecessary subscriptions like Netflix/Foxtel/spotify, downsize your car, any spare cash use to domino your debt. The Barefoot Investor is a really good read in regards to getting your financial situation under control. It's going to take hard work and discipline but it's totally doable
Insurance wasn’t enough to cover a new car or a new second hand car? Did you get brand new or did you get something that your insurance would cover until you could trade it in and get something brand new when you weren’t so in debt. It doesn’t sound like you meet the requirements and you possibly need to downsize and budget really strictly like removing any vices you have and stop and extra shopping and live within your means until you are in a better position. I’m not sure what you can do but maybe consolidating any big debts into one debt could make your repayments smaller.
You should be aware that you need to replace the money bequeathed to your son or, assuming he was listed as the recipient in a will, insurance policy or super payout, you have likely broken the law and can be prosecuted.