Future Proofing
Contents
What is future proofing?
Identifying future events
Steps you can take
Overview
Before you decide on a debt option it is important to think ahead about changes of circumstance that might affect your finances. This is because many debt options and strategies can lead to a financial and lifestyle commitment of one year or longer.
What is future proofing?
By future proofing we mean minimising the effects of future financial shocks by identifying events that we know will happen in the future, and thinking about things that might, or we predict will happen.
If you can get into a routine of future proofing, you can build longer-term financial resilience when your debts are cleared.
Identifying future events
It is true that not all future life events can be predictable, sometimes stuff happens that knocks the wind out of our sails. However, there are effective ways to plan for any eventuality, as well as the anticipated and predicable life events.
There are 4 main types of life events:
those that are likely to happen
those that might happen
those that will happen
those that are unexpected
Steps you can take
As part of the debt advice process, you should check the following with your debt adviser when you progress a debt advice strategy:
timeline and what is expected of you?
any costs involved?
affect on your credit rating, for how long it will impacted?
what creditors might do next?
when will you be free of debt - write-off?
what you should notify creditors?
what you should do if creditors continue to contact you?
will there be reviews, if so, how often?
what audit checks will be made - bank statements, income?
what you must do if your circumstances change?
does your bank account need to be changed?
do you need to make any lifestyle changes?
Once you are free debt free, you need to adopt the following practices:
take a look at our 'Your Future' section
check your bank statements and bank balance regularly
continue to follow the income maximisation and budgeting tips you have been advised - these are for life
make sure regular payments that you set up synchronise with your income cycles
avoid credit for as long as possible, it's likely to be more expensive because you have a recent history of debt
remember what your priority expenses are and pay them first
spot the early warning signs of unmanageable debt
access our self-help information in our Debtipedia
start saving when you can, and think about events and expenses that might or will crop up
get more help if you need it.