Thankfully, there are a few easy things you may be able to do to better manage debts and reduce your stress levels, including:
- Pay the highest rate first: Focus on getting through your most expensive debts one at a time. But don’t forget to pay at least the minimum amount on all of your debts to avoid additional fees and charges.
- Review your accounts: If it’s been more than 12 months since you shopped around, you may not be in the best account for your needs. Researching what else is available may help you find accounts with lower interest rates and more features that could work harder for you.
- Debt consolidation: Consolidating debts into an existing mortgage could help reduce the amount of interest you are paying and may make your entire financial situation more manageable. The money you then save on your short term debts can be filtered back into your mortgage to help you pay it off faster.
- Consider how you structure your finances: Setting a budget is the best first step to getting out of debt, and it will also give you a chance to see if you are making the most of your money. If you have an offset account attached to your mortgage that you’re not regularly using, you may find you are able to pay down your debts faster just by using your offset account more wisely.
When debts pile up, it is not uncommon to feel stressed about paying them off. Talk to me, Ian Robinson, at Mortgage Choice in Noosaville about how I can help. 0414 521 012