Assessing the problem means working out your financial position. Fixing the problem will involve finding out your rights and then working out how to best manage demands on your income and what, if any, payments could be challenged, ignored or reduced.

To work out your financial position, it can help to make three lists. Starting on a positive note, list your income and assets. Assets are items of value, for example real estate or savings. Your list should show the worth of the asset if you were to sell it. Assets do not include ordinary household items such as bedding or refrigerators. Check that you are receiving all your entitlements from Centrelink (see Chapter 11, Centrelink, for more information about this).

The second list is for your expenses, which are all your living costs, such as accommodation, food, and travel. Your list of living costs should be as accurate as possible. This may mean looking up past bills for things such as phone and electricity, to work out exactly how much these services are costing you. If your income is paid weekly, it is best to list your expenses in weekly terms. If you are paid fortnightly or monthly, then your expenses should be listed using that time frame.

The third list is for creditors and should show the amount you owe for any loans, unpaid bills and outstanding accounts. You should note beside each debt whether anyone else also owes the money or has guaranteed the loan. Also, show whether the creditor can repossess any property if a loan is not paid and what the value of any property would be if it were sold.

At this stage you should have a clearer picture of your financial position and be in a better position to plan.