Financial decisions
Borrow according to need and affordability
Use information, calculations and planning to assess whether a new commitment suits your financial circumstances.
01
Identify the purpose
Identify why financing is needed and the minimum reasonable amount.
02
Calculate affordability
Compare the monthly payment with net income and existing commitments.
03
Compare terms
Shorter and longer terms affect repayments and interest differently.
04
Understand the cost
Review the rate, charges and total repayment amount.
05
Plan for emergencies
Do not use all surplus income for one commitment.
06
Ask for clarification
Do not sign documents you do not understand.
Signs the commitment may be too high
Payments can only be made by borrowing again.
Essential spending would need to be reduced unrealistically
There is no allowance for emergencies or income changes.
The total repayment is not understood.
If you experience difficulty
Contact the official channels as early as possible to understand your options and responsibilities. Do not ignore communications or use unknown third parties.