How Can I Better Manage My Debt?

June 08, 2017
Daniel Meade

4 STEPS TO BETTER MANAGE YOUR DEBT

 

With interest rates continuing to hover at all-time lows, now is the perfect time to get on top of your finances and better manage your debt.

 

1. Tally up your debts

Make a list of your debts so you know exactly where you stand, you need to have a clear picture of what each debt is and how much you owe in total before you can start tackling your debts.

 

2. Set a budget

Setting a budget is the only way to stay on top of your finances, making sure your money is going where you want it to. It's not about depriving yourself - it's about being in control.

Building a manageable budget which factors in all your regular spending habits, showing how much you spend each month and how much you can save. Budgeting will also show you how much you can afford to put toward extra repayments to clear your debts.

If you’re not happy with how much money is left over, check your budget to see where you can cut back on spending.

 

3. Prioritise your debts

Continue to pay at least the minimum repayment on all your debts.

Once your budget is set up and you know how much extra you can pay into your debts each month, you need to work out which debts you want to pay off first.

You could start by – paying off the debt with the highest interest rate first or paying off the smallest debt first.

Finally set the payments up to come out automatically so you don’t forget or feel tempted to skip it. Once the debt is paid, close the account.

 

4. Review your spending habits

By reviewing your spending habits, it will allow you to see where you may be able to cut costs and find out where you may be spending frivolously.  Also by investigating your spending habits will allow you to see where you spend the most amount of money and where you can continue to manage your ongoing debts.

 

If you have found this information helpful or have any further inqueries as to how you or a loved one can better manage your debt. Contact John Meade from Mortgage Choice Geebung on 07 3833 9666 or email john.meade@mortgagechoice.com.au. 

Posted in: Refinancing

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