Latest news with #debt
Daily Mail
3 hours ago
- Business
- Daily Mail
EXCLUSIVE I hit rock bottom after spending $300,000 on booze, designer bags, shoes and so-called 'friends'. Here's how I turned my life around
An Aussie woman has recalled the horrifying cycle of abuse that landed her in $300,000 of debt and how she finally broke her destructive spending habits. Liz Porter, 54, hit rock bottom after seven years of spending her $4,000-a-month income on partying, clothes and designer bags while failing to pay her bills and sinking further into crippling debt. Ms Porter turned to spending as a way to cope with the abuse she suffered at the hands of boyfriends as well as being conned out of money by so-called friends. Today, Ms Porter is an IT manager in Australia's health sector and a proud home owner in Melbourne 's Docklands, an achievement which seemed impossible when she was declared bankrupt at the age of 28. The 54-year-old explained how her problems spiralled because she had low self-esteem, which began while she was at school. 'I was made to feel stupid, I even had teachers tell me that I will never amount to anything so I spent a lot of my younger years believing I was stupid and that everything I did was my fault,' she told Daily Mail Australia. 'When you feel bad about yourself you attract people that are not good for you and I had relationships that were abusive. They used to tell me I was fat, ugly, disgusting.' When the abuse turned violent, Ms Porter turned to spending. 'The only way I could ever feel good was buying frivolous stuff to make myself feel good,' she said. The 54-year-old admitted periods of spending coincided with moments in her life where she felt worthless. She recalled a horrifying incident with an ex-boyfriend who pushed her down the stairs and then accused her of being 'clumsy'. 'Even old school friends would come into my life and they'd rip me off, take advantage of me and get money out of me,' she said. In one such incident, Ms Porter's friend tricked her into signing a lease for a three-bedroom property and then refused to pay her share. At her lowest, Ms Porter was spending her $4,000-a-month income on clothes, shoes and bags, admitting she now has 'nothing to show for it'. She turned to alcohol and food for comfort, and ended up weighing 130kg at her heaviest. Over the course of seven years, Ms Porter's spending racked up to over $300,000. 'I would spend, spend, spend and then think "I haven't got money for rent",' she said. Ms Porter struggled to tell her family her spiralling debts as she feared her loved ones would think she was 'stupid'. After being sexually and violently assaulted, Ms Porter finally opened up to her family who advised her to speak to a counsellor. 'When I spoke to a counsellor about the abuse it was like opening a can of worms and initially my spending habits worsened because I was so upset and I needed to feel better about myself,' Ms Porter said. The counsellor suggested she see a financial advisor and she was subsequently declared bankrupt at the age of 28. With $40,000 worth of debt, she first entered into a Part IX debt agreement, which is an alternative to bankruptcy for individuals struggling to repay their debts. After paying back $10,000, Ms Porter's counsellor said her debts were taking too great a toll on her mental health. They advised the 'broken' Melbourne local to file for bankruptcy, a legal process where you're declared unable to pay back your debts. In Victoria, bankruptcy typically lasts three years and one day. Credit reporting agencies keep a record for five years from the date of bankruptcy or two years after your discharge, whichever is later. Ms Porter said her counsellor's belief in her completely changed her mindset. She rebuilt her life and landed a job as an IT supervisor at Telstra, where she quickly rose through the ranks. Years later, she took voluntary redundancy and used the money to enroll in a financial management course. After believing she would rent for the rest of her life, Ms Porter was shocked to learn that her consistent rental history, strong income, and savings from the redundancy made her an ideal candidate for a mortgage. Ms Porter went on to get a new job and bought a unit in Melbourne Docklands, the same area where she had rented for 13 years. The 54-year-old is now looking to the future and hopes to retire early, something that would have seemed impossible when she was younger. She stressed the importance of being kind to yourself during hardships and 'learning to love yourself' and realising 'you're stronger than you think you are'.
Yahoo
7 hours ago
- Business
- Yahoo
5 Reasons You Should Pay Off All Debts Before Retirement If You Can
Debt is becoming an increasingly common burden for older Americans. According to a Lending Tree report, more than 97% of adults aged 66 to 71 carry non-mortgage debt. In addition, older residents in the nation's largest cities have a median debt balance of $11,349. Read More: Find Out: This financial strain is prompting many to delay retirement, draw down savings prematurely, and experience heightened stress. Here are five reasons you should pay off all debts before retirement if you can. Carrying debt can drastically postpone retirement and force many Americans to work far longer than they planned. A National Debt Relief survey found that 67% of non-retired respondents said they 'definitely' don't have enough saved to live comfortably in retirement and needed an average of 12 more years to reach their savings goals. 'Our findings reveal a troubling reality: Our nation's growing consumer debt epidemic has left millions of older Americans feeling stressed about their debt, which has considerable impacts on their ability to build a comfortable financial future and their ability to retire,' said Natalia Brown, the organization's chief compliance and consumer affairs officer. Be Aware: For many older adults, carrying debt makes it difficult to save enough for a stable retirement. Nearly half (49%) of respondents in the National Debt Relief survey reported having less than $20,000 saved, and 22% had saved nothing at all. 'Carrying debt into retirement can quietly eat away at everything you've built,' said Bert Hofhuis, entrepreneur and founder of Banking Times. 'You've likely spent decades saving, budgeting and investing, only to see loan repayments or credit cards continue pulling money from your pocket when you're no longer earning a steady income. 'When you're debt-free, your pension or drawdown can go directly toward your needs, experiences or even helping family, rather than servicing interest. I've seen people sleep better just knowing no one's waiting at the end of the month to be paid back.' Debt doesn't pause when the markets dip. Retirees who carry debt may need to withdraw more aggressively from their pension or retirement accounts to meet monthly obligations. 'That puts pressure on your portfolio and can shorten how long it lasts,' Hofhuis said. 'In some cases, people trigger large taxable withdrawals to make lump-sum repayments, and that throws off their income plan. 'Debt repayments don't adjust based on how the markets perform, so if there's a dip in your investments, you're still expected to meet the same monthly commitments. It can trap you in a corner, where you're forced to make poor financial decisions just to keep up.' Retirement often brings a psychological shift in spending that can be worsened by debt. Mark Zagurski, director, strategy and communications at Mutual of Omaha Advisors, said that while some studies suggest retirees spend more at the beginning and end of retirement, debt affects their mindset. 'Many retirees become more price-conscious when they stop earning an income and start relying on savings,' Zagurski said. 'This can lead to cautious spending, and in some cases, underspending, even when it's not necessary. 'Carrying debt into retirement can make your finances feel tight at a time when you want to relax and enjoy life. High-interest debt can grow quickly, making it tough to keep up with payments. That could mean cutting back on things you enjoy or even selling assets to stay afloat.' Carrying debt into retirement reduces one's ability to adapt when life throws a curveball. 'Retirement isn't as fixed as people imagine,' Hofhuis said. 'Expenses pop up, whether it's healthcare, home repairs or helping grandchildren. If you're locked into repayments, there's less room to adapt.' Debt also adds emotional strain that often goes unspoken. 'I've worked with retirees who felt ashamed about their balances and kept it hidden from family,' Hofhuis said. 'It affected their well-being, not just their finances. If something unexpected happens, like a medical cost or a family emergency, and your money's tied up in loan repayments, you don't have many good options.' More From GOBankingRates These 10 Used Cars Will Last Longer Than an Average New Vehicle 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses This article originally appeared on 5 Reasons You Should Pay Off All Debts Before Retirement If You Can
Russia Today
8 hours ago
- Business
- Russia Today
Ukraine on brink of default
Ukraine will not pay $665 million it owes to international creditors, the country's Finance Ministry said in a statement on Friday. Kiev earlier failed to agree on restructuring terms with a group of debt holders led by hedge funds. The payment on the country's GDP-linked securities – debt with annual payouts tied to economic growth and amounting to $2.6 billion – is due on June 2. Ukraine was originally scheduled to make the payment a year ago, but a moratorium on bond settlements, approved by the authorities in Kiev, allowed the cash-strapped country to avoid default. The moratorium will remain in place until the debt is restructured, the statement says. The Finance Ministry noted that, under an agreement reached with international creditors in 2024, the so-called cross-default clause was removed from contracts. That clause had stipulated that failure to make payments on the GDP warrants could trigger a default on other debt obligations, such as the country's international bonds. The ministry emphasized that the removal of the clause means Ukraine does not need to declare a default on its international bonds. In April, Ukrainian authorities said they had failed to reach a deal to restructure part of the country's debt, with a nominal value of $3.2 billion. According to Bloomberg, Ukraine offered investors two options during the unsuccessful talks, including a full exchange for sovereign bonds by reopening existing notes. However, creditors reportedly agreed only to restructure the May payment and demanded over $400 million in cash, as well as the conversion of more than $200 million into new bonds – a condition Kiev rejected.
Reuters
21 hours ago
- Business
- Reuters
Moody's changes Brazil's outlook to stable from positive, affirms Ba1 ratings
SAO PAULO, May 30 (Reuters) - Moody's Ratings on Friday changed its outlook on Brazil to stable from positive while affirming its Ba1 ratings, citing a deterioration in debt affordability and "slower-than-expected progress in addressing spending rigidity and building credibility around fiscal policy."
Globe and Mail
a day ago
- Business
- Globe and Mail
Hudson's Bay lender sues Saks for repayment of $8.8-million in unpaid fees
One of Hudson's Bay Co.'s senior lenders is suing for repayment of US$8.8-million it says it's owed by Saks Global Enterprises LLC – the U.S. company formed last December when parent HBC acquired Neiman Marcus in a US$2.65-billion deal and spun off its American assets into a separate entity from the Canadian retailer. The lender, Pathlight Capital LP, agreed to restructure HBC's existing debt in December and to release the new U.S. company, Saks, from its obligations under the Canadian loan. That move was 'critical' to completing the Neiman Marcus deal, according to a complaint filed by Pathlight with the New York Supreme Court on May 21. The document accuses Saks Global of a breach of contract for failing to pay fees related to that debt restructuring. The filing also reveals that Saks Global has accused Pathlight of failing to support further debt restructuring for Hudson's Bay, contributing to the failure of the Canadian company to secure much-needed financing earlier this year. The plan that could have saved Hudson's Bay as we know it On March 7, less than three months after the Neiman Marcus deal closed and the carve-out of the companies was finalized, Hudson's Bay filed for court protection from its creditors in Canada under the Companies' Creditors Arrangement Act (CCAA). Court documents showed the retailer was struggling with $1.1-billion in debt and running out of cash to fund its operations. Pathlight's portion of that debt amounted to US$65.6-million as of March 7 – an amount significantly lower than what Hudson's Bay owed before the December deal, lawyers for the retailer said during a court hearing in Toronto on May 13. Pathlight's loan to HBC and its subsidiaries, including Saks, dates back to 2020, according to the complaint filed in New York. HBC asked Pathlight to restructure that outstanding debt 'to facilitate' the Neiman Marcus acquisition and the spinoff, the document states. Pathlight agreed, extending a term loan to HBC in December of 2024, and releasing the new U.S. entity Saks Global from its obligations under the Canadian loan. In exchange, Saks agreed to pay Pathlight a structuring advisory fee totaling US$13.8-million. That fee was due in three instalments with US$5-million owed in January, and US$4.4-million due in each of March and April of this year. On March 26, according to the claim, Saks Global sent a letter to Pathlight saying that it would not pay the remaining two instalments, because of 'Pathlight's alleged refusal to agree to further restructurings of HBC's debt.' The letter, submitted in court, also alleged that Pathlight's 'lack of good faith cooperation' was the direct cause of Hudson's Bay failing to secure refinancing. That in turn led the Canadian company to seek creditor protection, the letter stated. 'Pathlight's ongoing intransigence further frustrated HBC's CCAA proceedings, and, on March 21, 2025, forced HBC to announce a near total liquidation,' Saks chief legal officer Andrew Woodworth wrote in the letter. Pathlight's claim calls these allegations 'baseless.' A representative for Saks did not respond to a request for comment. Hudson's Bay initially exempted six stores from the clearance sales, hoping to find a buyer or investor willing to support a restructuring plan. But when no such support emerged, the retailer announced in late April that it would add those stores to the liquidation, marking the demise of the 355-year-old retail chain and the loss of thousands of Canadian jobs. The deal last December consolidated ownership of Neiman Marcus, Saks Fifth Avenue, Saks Off 5th and Bergdorf Goodman under the new U.S. company. But signs of trouble soon followed at Saks, including delayed payments to vendors, according to reports. On June 30, roughly US$120-million in interest is coming due on US$2.2-billion in bonds that the company sold in order to finance the deal. On Thursday evening, Saks announced that it had secured US$350-million in financing 'to strengthen its balance sheet and support its long-term growth.'
