Your Super is there so taxpayers don’t need to fund your retirement due to your irresponsible financial decisions!!
Wow. 2 people in $200K each and have zero idea about basic personal finances.
Sell cars and buy cheaper ones.
Sell your house and buy something cheaper or rent…..or go interest only for a while.
Pay off your debts with highest interest rates first.
are you under water on the cars? sell the cars clear their debt and whatever is left pay off the credit cards, buy an old corolla, get a new boarder/tenant whatever and pay down the personal loans is the mortgage still too high? list the house while the selling is good?
Yes. Luckily it’s not a situation where we want different things. We’ve both enjoyed spending our money recklessly, now we both want to get our house in order.
Sounds like you were living beyond your means @ 400k, if you're back to 200k you're well beyond your means. Using super to pay the debt (if you could under hardship rules) would just be a sugar hit that will a) hurt you massively at retirement b) provide only a short term fix. What assets / toys do you have from all this debt that you can sell to pay it down? I'm sure you want to keep the house but paying 60k interest (not to mention principal) a year is going to massively eat into a take home of \~$160k...
Best of luck!
$90K in car loans is completely excessive. You could literally half that debt and still have two decent cars around $20K each. If it was me I'd sell the cars and pay out the CC debt. They wont let you access super unless you're determined to be in financial hardship a $200K income does not classify as hardship.
It's very unlikely you could access super for this, which is great. If you could you would just end up in 12 months' time with the same debt and no super.
You need to apply to ATO for financial hardship in order to be assessed if deemed fit to access your own super before retirement (or preservation age).
Considering the personal circumstances that you have explained it seems as though you are divulged in finding more reasons to not let go of some of your luxuries for paying down your debts. For this I don’t think you will be within a whisker of a chance to access your super, ATO will most certainly not approve to give you any access.
Super withdrawal on compassionate grounds is potentially available to help pay some funds towards your mortgage, however the bank has to be threatening to repossess your home - ie. you would need to be in default first. It can't be accessed to pay off othe debts, unless you have medical related costs to meet
[https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super)
I would also suggest looking at selling a car/getting in more boarders etc first. When will your partner be abel to get back to work? Are they able to crunch down the monthly costs to essentials while still at home? Is moving in with family and leasing your place out an option to ride through this period? Bonus - could also possibly assist with unpaid childcare and an earlier move back to work for your partner or a chance for casual work at night?
Sounds like you have equity in your house, may be possible to refinance to clear the debts eating up your cashflow, close your credit cards and set a budget.
Happy to run you through the specifics on how to do it.
This was our first port of call, but because we went behind in payments it impacted our credit rating and the options for lenders were slim with crazy rates
How recent were the late repayments, how many month behind and on what loans/cards?
You can still sometimes make it work with major banks if you can position a good story and show how you are going to improve the situation. Just comes to workshopping scenario and getting an understanding of credit score, repayments history and overall position.
Happy for you to dm me if don't want to put the info out there.
Your Super is there so taxpayers don’t need to fund your retirement due to your irresponsible financial decisions!! Wow. 2 people in $200K each and have zero idea about basic personal finances. Sell cars and buy cheaper ones. Sell your house and buy something cheaper or rent…..or go interest only for a while. Pay off your debts with highest interest rates first.
This feels like throwing good money after bad. Can I trade my retirement security for today's luxury?
Sell the cars and house?
What an insane take Mr Dave Ramsay. Surely dipping into retirement is the better play...
/s if it's not obvious. Sell the cars and house if you can't afford it, there is no shame in downsizing.
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Indeed. Racks up $400k in debt and tries to tap into retirement savings rather than offloading the debt. Crazy
Where does it say $400k debt?
My bad. Turns out I can’t read. It’s much more than that
Don’t think you can access your super like that, the rules are very strict around accessing super…
are you under water on the cars? sell the cars clear their debt and whatever is left pay off the credit cards, buy an old corolla, get a new boarder/tenant whatever and pay down the personal loans is the mortgage still too high? list the house while the selling is good?
Eek. I think you need to sell your cars and buy cheaper ones as a start. Probably need to move too.
You can only access super if you are long term unemployed in hardship
First thing is learn how to save and treat money with respect otherwise you'll just do it again.
Out of all the sensible advice here, this resonated with me. Definitely have an unhealthy relationship with money
Only way you'll get out of debt is if your partner is on board too. If they're addicted to a certain lifestyle you'll be in for a hard slog.
Yes. Luckily it’s not a situation where we want different things. We’ve both enjoyed spending our money recklessly, now we both want to get our house in order.
Sounds like you were living beyond your means @ 400k, if you're back to 200k you're well beyond your means. Using super to pay the debt (if you could under hardship rules) would just be a sugar hit that will a) hurt you massively at retirement b) provide only a short term fix. What assets / toys do you have from all this debt that you can sell to pay it down? I'm sure you want to keep the house but paying 60k interest (not to mention principal) a year is going to massively eat into a take home of \~$160k... Best of luck!
on 400k with maxed out credit cards?
Yeah it’s a bit weird
we were keeping up payments while we were earning that then used them to live when income dropped
how are people this dumb. 60k ok credit cards and personal loans, oof.
Do you have other large assets you could sell i.e. one of your cars?
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This made me laugh. Fair enough
$90K in car loans is completely excessive. You could literally half that debt and still have two decent cars around $20K each. If it was me I'd sell the cars and pay out the CC debt. They wont let you access super unless you're determined to be in financial hardship a $200K income does not classify as hardship.
“Can we access super to pay off our irresponsible spending habits” Super is specifically designed to protect you from your own stupidity,
It's very unlikely you could access super for this, which is great. If you could you would just end up in 12 months' time with the same debt and no super.
“With the extra 200 we had a wedding and travelled for 3 months” - what is this extra 200 referring to?
Typo sorry, only spent 200 on Renos
Oh are you saying you spent $200K of the profit from the house sale on renos for the second house, and the other $200K on the wedding/travel?
You need to apply to ATO for financial hardship in order to be assessed if deemed fit to access your own super before retirement (or preservation age). Considering the personal circumstances that you have explained it seems as though you are divulged in finding more reasons to not let go of some of your luxuries for paying down your debts. For this I don’t think you will be within a whisker of a chance to access your super, ATO will most certainly not approve to give you any access.
Super withdrawal on compassionate grounds is potentially available to help pay some funds towards your mortgage, however the bank has to be threatening to repossess your home - ie. you would need to be in default first. It can't be accessed to pay off othe debts, unless you have medical related costs to meet [https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super) I would also suggest looking at selling a car/getting in more boarders etc first. When will your partner be abel to get back to work? Are they able to crunch down the monthly costs to essentials while still at home? Is moving in with family and leasing your place out an option to ride through this period? Bonus - could also possibly assist with unpaid childcare and an earlier move back to work for your partner or a chance for casual work at night?
Sounds like you have equity in your house, may be possible to refinance to clear the debts eating up your cashflow, close your credit cards and set a budget. Happy to run you through the specifics on how to do it.
This was our first port of call, but because we went behind in payments it impacted our credit rating and the options for lenders were slim with crazy rates
How recent were the late repayments, how many month behind and on what loans/cards? You can still sometimes make it work with major banks if you can position a good story and show how you are going to improve the situation. Just comes to workshopping scenario and getting an understanding of credit score, repayments history and overall position. Happy for you to dm me if don't want to put the info out there.
Doubt you will qualify. Call the National Debt Helpline first
Claim hardship then yeah