Compare options for addressing financial difficulty, including:

Question 1

What is an alternative plan?

Answer 1

A payment plan allows you to break down your payment into smaller amounts that are made via instalments and spread over a fixed period of time. Within a payment plan, you pay back an agreed sum of money weekly, fortnightly or monthly until the balance is cleared.

Question 2

How are alternative plans beneficial and effective?

Answer 2

Organizing payments into a scheduled plan allows consumers to shop more freely because they know they can easily make smaller payments over time. Payment plans give your customers greater power and flexibility

Question 3

What is a financial institution?

Answer 3

company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, mortgage

Question 4

How can financial institutions offer support?

Answer 4

Options can include setting up a payment plan or altering your loan repayments. This is called a ‘financial hardship arrangement’. Your arrangement may be temporary, like deferring a payment, or permanent, like varying a loan.

Question 5

How are financial institutions beneficial and effective?

Answer 5

Financial institutions help keep capitalist economies running by matching people who need funds with those who can lend or invest it.