The mining boom was the modern day gold rush in Australia. The promise of job security and high wages lured people away from their run of the mill lives to live the highlife as a mining professional. As the industry battles change, many mines are falling short on their promises leaving thousands of people out of work and in a tedious financial position.
From the high life to the debt pit
Thousands of miners are being forced to make the adjustment from a six figure salary to little or no income as the world energy industry turns on its head. Mines are being closed and mining units and teams are being made redundant leading to a mass loss of jobs. People who purchased property, cars and other large investments suddenly find themselves struggling to make repayments, unable to sell and spiralling into serious debt.
Everyday bills are no longer affordable and repayments on huge investments like cars and property are placing a huge strain on day to day living. Serious debt like this can impact every aspect of life including your ability to find work, relationships and even your health. The stress caused by financial strain can lead to anxiety and depression and is even known to manifest as physical ailments, such as stomach ulcers and severe migraines.
How it can happen
Gladstone, the latest Queensland town to succumb to the mining industry, is facing a serious problem, not only for the miners who have lost jobs, but also those who thought wise to invest in property during the boom.
According to Domain economist Dr Andrew Wilson, median house prices in Gladstone spiked at $475,000 in December 2011. Five years later, the median price is $300,000 and with the mining company now struggling to shift its product, this once hot investment market is now non-existent.
Miners who have lost their jobs are moving away as the cost of living remains high and people who bought property as an investment can’t find tenants to move in, leaving them with expensive mortgage repayments for a house with negative equity.
Business helping with the financial shock
Luckily, businesses exist to genuinely help people deal with their financial shock. Whether they have suffered an extreme loss of income or are stuck with an investment property they can no longer afford, Debt Rescue can help get your finances back on track.
There are a number of options available to help people deal with financial change and manage their debt without having to declare bankruptcy. Some of these options include debt consolidation through mortgage refinancing, formal and informal debt agreements, budgeting and money management.
What to do next
Each and every person will be struggling through their own unique circumstances – no two debts are the same. There is no one size fits all solution to debt. That is why Debt Rescue takes the time to learn about your situation and customise a solution for you.
If you are struggling to get by week-to-week, falling behind on regular repayments or don’t know how to adjust to a massive loss of income, call us today on 1800 00 3328 and speak to one of our experienced case managers.