Getting out of debt is no easy feat, especially when unpaid bills just keep piling up. But don’t worry, we’ve compiled a handy and simple guide to help you get out of the red and back into the black. Here are five easy things you can try to get out of debt faster:
The first (and often hardest) step is actually making the commitment to pay off your card(s). Start by sitting down and working out exactly how much debt you have.
Then, once you have an idea of what you’re dealing with, it’s time to come up with a budget. Start by reassessing your weekly spending and looking for areas where you could potentially cut back. For example, if you buy your lunch regularly or a coffee every morning, you should think of giving up these habits. Make your coffee and lunch at home and use your savings towards your debt – you’ll be surprised how much money you can save. Your social life might suffer for a while as you tighten your budget, but your future self will thank you.
It might sound obvious but try to avoid using your credit card as much as possible and make your payments with cash instead. Using cash prevents you from spending more money than you have and helps stop further growth of your debt.
You may also want to consider lowering your credit card limit – setting a reasonable credit limit should help you avoid temptation and unnecessary spending.
If you have multiple credit cards to deal with, start off with one credit card and then move to the next one once you’re done paying off the first. Which card should you pay off first? You generally want to pay off the most expensive card first as it will mean forking out less overall in interest charges. Once one card is paid off, why not remove it from your wallet altogether?
If you’re looking for a way to make some extra cash, why not consider selling your belongings? We all have that little (or not-so-little) pile of unused stuff sitting around the house. It might be a kitchen appliance that you never ended up using or a pair of shoes that you’ve only worn once. So instead of letting them gather dust, sell them!
One way of swapping your unwanted items for cash is to list them for sale on eBay. Another option is Facebook Marketplace which allows users of the hugely popular social media site to advertise their items for sale, free of charge. Or you could set up a good old Aussie garage sale and advertise with flyers in your local area. After all, one man’s trash is another man’s treasure!
If you’re really struggling to lower your credit card debt, talk with your credit card provider as soon as possible. Most credit card companies can help you make a plan for your debt. They may be able to give you a lower interest rate or waiver current late fees. It’s important to remember that open communication is key!
Important information: The information provided on this website is of a general nature and for information purposes only. It does not take into account your objectives, financial situation or needs. It is not financial product advice and must not be relied upon as such. Before making any financial decision you should determine whether the information is appropriate in terms of your particular circumstances and seek advice from an independent licensed financial services professional.