A debt clock on your wrist might be an important tool in fighting creditors in your home country.
If you can’t make a payment on your debt, you might need to consider legal action against the creditor or find a new creditor to deal with.
The Consumer Credit Reporting Bureau (CCRB) said this year there were 1.6 million debtors and creditors who had debts of more than $150,000 in Australia, up from 1.1 million in 2015.
The CCRB’s figures are for the period from 1 July 2015 to 31 December 2015.
“Debt collectors have an interest in knowing how much money people owe,” CCRBs managing director and head of debt reporting, Jane Withers, told ABC News.
“You can’t be on the safe side if you don’t know how much debt you have.”
Debt clock on a wristKanye West’s debt was $150 million, but she didn’t have to worry about having to pay her creditors because her debt clock was set to display the amount of money owed.
“When I was at school, my parents used to give me my own money for my homework, which was like a credit card, but they didn’t give me a creditcard to pay,” she said.
“So I just took out my credit card and put the balance on it.”
Ms Witherson said that, if she was going to owe a lot of money, she would set her debt timer to display “all the debt I have”.
“That’s not really a good idea, because if I get a phone call from a creditor saying ‘you owe us $150k’, it’s probably going to be a very hard time for me to pay that debt,” she explained.
“I’d probably go and look at the clock and say ‘here’s $150m, you owe me $150’ but that’s not going to help me at all.”
When someone is trying to get a hold of you to pay off debt, they’re looking for a lot more than just that debt, she said, and there’s no way around it.
“If I’m going to go and get my phone call, I’d better have it on the clock because it’s going to give them a pretty good idea of how much of my money I have,” she advised.
“A lot of debt collectors don’t really care that much about the amount that you owe them.”
But, Ms Withersods advice is that you should take the time to set your debt timer on your watch.
“Just make sure that you have a watch that’s very accurate, but also that you’ve got a watch with a lot less batteries than you might think,” she told ABC.
“Because if you have the battery in your watch for an extended period of time, you’re going to get drained pretty quick.”
Ms West has her own debt clock in her wristband, but there’s also a debt tracker on her phone that shows her total debt.
Ms Wethers said there are different ways to set up a debt clock, depending on the type of debt that you are facing.
“Some of the credit card companies have some kind of app that allows you to do that, which is great if you’re looking to track your credit card debt, but it’s also great if it’s to be able to see the interest rate on your debts that you’re trying to pay, or your debt load,” she noted.
“It also shows what you’ve already paid for your car insurance and your mortgage.”
It’s a good time to pay your debt offIt’s possible to pay debts off within a couple of months, and it may be possible to set a debt timer for longer periods of time.
If you are a single parent, you may be able pay off your debts in the near future, but if you are currently unemployed, it may not be possible, according to Ms WetherSays there are various ways to pay for your debt.
“What you might want to do is, if you’ve been unemployed for some time, and you’ve actually done something productive that you think would be beneficial to your business, or something that’s really beneficial to the community, you can use that to pay some of your debt,” Ms Wye said.
“You could go out and get a job, you could pay off a lot or you can just pay it off, but the key thing is that it’s not a matter of if you can pay it, but how long it’s gonna take.”
The Consumer Financial Protection Bureau says if you owe money and it’s due to the state of the economy, the government should cover it by providing “banking, savings, and other financial services”.