By now, many of you may have heard of the good news that the economy has slightly recovered from the global financial crisis last year. However, the positive effects of this have not been felt by Australians as many are still facing financial hardships up until now.

A new survey by BankWest for its second yearly Financial Fitness Index report showed that 28 percent of Australians continue to experience financially instability. By this, it means people continue depend on their debt and have little or even no savings at all. Some don’t have an insurance coverage and are facing high housing costs.

Of the 833 people respondents that took part in the online survey conducted by BankWest, nearly one third or 34 percent of women in Australia and 25 percent of men belong to the financially unfit category. These figures are higher by six percent compared to last year’s 22 percent when the global crisis was greatly felt in most parts of the world.

What’s surprising in this research is the women being found to be more financially unstable than the men.  There are several reasons that can be attributed to this.

Firstly, women are often given the tasks by their husbands to manage the family’s budget. This is no easy work but sometimes, due to financial difficulties encountered by the family, there’s a possibility that women will become hard up as well. Those separated or divorced and without work are in a much difficult financial situation as they rely mostly on the support of their former spouse.

Secondly, not all women or specifically the wives are employed which makes them vulnerable to accumulate debts at some points in their lives. And if ever they have work, their income normally serves only to supplement that of their husband’s.

The BankWest survey further found that in 2009, majority of people across Australia regardless of age groups experienced financial difficulty in terms of finances. The findings also showed that only about half of the respondents were able to manage their budget well as proof of their moderate savings, average housing costs, some insurance and moderate levels of debt.

Most of the people found to be financially fit are in the western part of Australia. Some 36 percent of residents in this area belong to the financially fit category. Additionally, the seniors and retirees aged 64 and beyond are in the same category with 35 percent of them and only 15 percent in the negative.

Analyzing this situation, most people that fall in the unfit are those that frequently use their credit cards and have accumulated large debts through the years. Those with several outstanding loans are guilty as well. It has been reported several times recently that using the plastic entails a high cost because of the different and sometimes hidden charges involved.

Financial advisors often recommend to those who prefer a debt consolidation program to focus on utilizing a single loan in repaying their debts. Taking out a cash advance or payday loan is an affordable alternative and available to employed people over the age of 18 and with a current bank account.

Homeowners who are careful about handling their family’s finances often want to avoid paying their bills late. For them, paying promptly is the best way to cut down on debts and they’re absolutely right. Paying late means more charges which results in higher balances to pay. And if no immediate action is taken to settle this, it could end up in accumulation of debt.

Paying bills is a common predicament of many people especially those who frequently use their credit cards. Sometimes, they rely on this plastic card for most of their purchases not knowing the underlying charges involved. What happens then is that they get surprised with the huge balance they have accumulated when their bills finally arrive at home or in their office.

To give you a glimpse of what I’m telling you about, here’s the latest financial buzz. The Herald Sun reported that more than 1.5 million Australians have earned unfavorable credit standings all because of their debts and overdue bills. In the state of Victoria, for instance, some 350,000 households are not paying their telephone, electricity, water, gas and credit bills on time and are missing payments for their loans. Due to this situation, financial counselors are already expecting a deluge of people seeking their assistance notably those finding difficulty in paying their basic utility bills such as electricity and water.

Companies normally list as default bills amounting to $100 or more that are not paid after 90 days. This default record then remains on file for five years and this is being tracked by credit rating agencies. Consumers who fall under this category may it find it hard then to obtain a new loan or credit line. This is the case as financial institutions impose stringent rules for borrowers with not-so-good credit standing.

What this calls for then is to be a responsible consumer. Whether you have credit cards or you have availed of the short term unsecured payday and cash advance loans, what matters is you are able to pay your dues on time. It is never good to delay or worse, run away on your payments as this normally ends up in a bigger amount to pay or fines.

The benefits are yours to gain if you fulfill your financial responsibilities. First off, you earn a good credit rating. Secondly, it would be easy for you to get approved should you apply for loans including the unsecured payday and cash loans. Thirdly, you can ask for a lower interest rate which people with bad credit are not able to avail of.

The best attitude to carry going forward is to be prompt in paying your important bills. Keep a diary of your monthly payables and when your bills arrive, make it a point to pay before the due date if funds are already available.

Millions of people have already become victims of the credit card and if you don’t want to be one of them, then pay on time. You’re not only doing yourself good but you’re also avoiding debt.

Many people who have outstanding debts may be feeling the pressure these days especially when collectors start giving them notices or calling them at home and at the office. This can indeed be a stressful situation but this is the reality for those who continue to accumulate debts and are not paying attention to settling their financial obligations on time.

You may have heard stories of collectors threatening to inflict physical harm to customers who don’t take immediate action in paying their loans. Some of them even make calls during inappropriate hours and even while at work thereby causing more stress to borrowers.

One of the most effective methods of cutting down on debt is to spend less. This means not spending much on unnecessary items such as watching movies and eating out several times a week. A latest research commissioned by Suncorp Bank has showed that in Australia, the Queenslanders are guilty of dining out up to three times every week spending an average of $50 to $100 on quick meals. And so as some 50 million people in Queensland are found to be doing this, the amount can blow up then to a whopping $50 million.

The recent survey also revealed some revealing demographics. People belonging to this group are mostly those aged 18-24 as well as those 35 to 44 years old. The older ones specifically those above the 50s are the thrifty types maybe because of the fact that they’ve been through tough times before and have learned their lessons well. Additionally between the men and women, the study found men to be much guilty of eating out often compared to the females.

Digging more into this subject, it’s not surprising why men showed up to be the most frequent fast food and restaurant diners compared to women. Firstly, as most of them are the breadwinners in the family, they’re very busy people who want to just take a quick breakfast, lunch or dinner outside rather than bring home cooked food to their offices. Secondly, many men whether single or married are not very interested in cooking the reason why they’d rather eat out. Thirdly, men love to socialize which is why they opt for dining out.

But this lifestyle could lead to more debts, according to financial advisors. They point out that if only this $100 expense each week is channeled to paying debts including home and personal loans such as cash advance and payday loans, people can better manage their finances and lessen their debts. If not for paying debts, they could also start saving the amount for future use.

Some may reason out that they earn well and can afford to eat out but nevertheless, this should not be reason enough to splurge. Having the right attitude towards finances is ideal in order to cut down on debt and save for the future. This means if you’re used to eating out three to four times a week, why not make it once weekly or say, twice a month just to reward yourself for the good job you’ve done for the entire week.

Do you know why it is high time for you to save today? There’s a big reason to do so because banks are increasing the interest rates for their local deposits. The banks are doing this for the first time in 10 years in an effort to attract cheaper retail funds. What this means is when you put your money into a savings account, you will gain more money going forward.

Here’s more great information that you should know. According to a financial comparison group RateCity, the average interest rate for a one-year term deposit is even higher than the cash rate of the Reserve Bank. Specifically, a one-year deposit will enjoy a 6.3 percent rate while a 5.51 percent interest rate is being implemented for online savings accounts. For those putting in money for more than one year at major banks such as Westpac, for instance, an 8 percent interest rate in deposits can be enjoyed for a five-year term.

These high rates may not compare with those offered in the early part of 2008 but they should be high enough to encourage you to save. Just consider that when you have a savings account and you don’t touch them for the long term, you can definitely reap the rewards. The banks for their part will also benefit by earning profits especially from customers who decide to stay long with them or even for their lifetime.

While you’re proceeding with your saving efforts, it would be best as well to avoid using your credit cards. If you have one or more of these plastic cards, freeze it while you’re focusing on paying your balances. Or better yet, close all your accounts when you have paid off the balance.

You may be unaware but there’s a latest report that says the hidden details in the interest charges applied by credit card companies on your partial payment as well as on your overdue balances are what actually cause customers to go into huge debt. This was found out by a consumer advocate group called Choice.

The recent study also revealed what many credit card users may not know. It added that many credit card firms tend to move back the date of their interest to the date of purchase especially for late payments. So even if you’re late in paying your amount due for just one day, you can incur a high interest that can be backdated to more than 30 days.

This should be reason enough for you to stop using your plastic cards. What you can do then when you need fast cash at a time when your salary is not yet available is to take out a payday or cash advance loan for just a short term say, two weeks to a month at the most. This alternative can help you in your effort towards saving money as it’s affordable and does not require you to take out a huge amount of money. And as long as you are employed, you don’t have to worry about paying back your loan before its due date.