By Lacey Filipich BEng(Hons) MAICD
Imagine you’re a low-income earner and you’re in debt. Your debt is high enough proportional to your wage that you’re effectively bankrupt, and hence can’t even access your bank accounts. You have no savings and no property. You’re probably relying on your family and friends to feed and clothe you, or whatever meagre amount is left over from your pay after debt deductions. Or perhaps you rely on government welfare. Sounds rather miserable, doesn’t it.
Now, imagine a magic fairy came along and offered to wipe out all your debt. You could access your bank accounts again and keep all your salary (after tax). Sounds pretty damn good, doesn’t it.