On the episode today we are joined by Lisa Simpson, a financial counsellor who helps people to get out of debt. After working for over 13 years as a Financial Counsellor and Educator Lisa has developed a passion for Financial Coaching and Literacy and her broad knowledge base allows her to assist people from all walks of life, all ages and circumstances.

Lisa has a passion for teaching people what they don’t know about money. She shares with us the common ways that people are getting into debt. In her most recent role, she was looking at people’s bank statements every day and saw a huge number of Buy Now Pay Later entries on their bank statements. Overcommitting via Buy Now Pay Later is so easy, and Lisa shares the ways that these kinds of debts can easily get out of control.

Lisa also shares why Buy Now Pay Later aren’t regulated under the ASIC rules like other bank products and why this has created financial hardship for so many.

I know if these products were around when I was in my late teens and early twenties I definitely would have got myself into debt. Lisa provides guidance on what to do if you have a Buy Now Pay Later debt, with the first step being a budget, which she likes to term a personal money map. Essentially, this gets you from where you are now, to where you want to be. I love this way of looking at budgeting! Lisa teaches us about the snowball method of paying down debts.

Lisa also shares the downfalls of Buy Now Pay Later products, and why the ‘no interest’ term hides the other fees and charges that can apply.

Lisa explains why the four walls of your own home are the most important costs to consider first and why you should prioritise these four needs over wants.

If you’re in debt, there is help available. Lisa shares how Financial Counsellors can help. There is also significant help available from utility providers, banks and even grants, including payment plans, energy audits and moratoriums (essentially a payment holiday!).

Lisa also steps us through ways of approaching hard financial conversations with your partner. These can be hard, but Lisa’s tips will really help.

A common money problemo we often get asked about is - will a Buy Now Pay Later debt affect their credit rating? Lisa explains the difference between your credit report, credit rating and your credit score and what is and isn’t listed on these.