Budgeting

What to do if you are Struggling to Pay your Rates

If you are struggling to pay your rates, it might be tempting simply to do nothing and hope for the least amount of consequences. In reality, reaching out for help sooner rather than later, will most likely give you more options that will help you get back on track and on the road to successfully meeting your financial obligations.

Call your council right away if you find you are unable to meet all or part of your rate obligation. åÊMost councils have a hardship policy already in place to help those struggling to make their payments. Some of the options available to help you might include:

• Deferment of part or all rates and charges for a period of time;
• Write-offs for interest owed on overdue rates;
• Allowing rate payments in smaller instalments;
• Possible rate reduction, waiving or deferment in cases of increased rates from land revaluation.

Be prepared to put your hardship case in writing. Most councils will evaluate cases based upon circumstances such as your past rate payment history, the amount you currently owe and how long the amount you owe has remained unpaid. If you address the issue early on, you can hopefully avoid additional penalties, usually in the form of interest, levied against the amount you owe.

You might also be able to avoid the situation where your council takes legal action against you. åÊMost importantly, hopefully you will be able to avoid the worst case scenario where a council repossesses your property and sells it to recover your unpaid rates, fines and interest charges.

Don‰Ûªt be locked into late fees and financial penalties. A reasonable small personal loan will help you take care of your problems and establish a payment plan that works for you.