5 tips to help you get debt free this year
Is getting on top of your debt one of your New Year’s resolutions? Now that we’re well and truly into the year, how’s that going so far? If you need a little help taking control of your finances, check out these 5 tips that the Credit Savvy team have compiled below!
1. Create a budget
This seems pretty obvious, but it’s worth repeating. Create a budget and stick to it! Make sure you know your income, expenses, and the amount of debt you need to repay. Then you can figure out how much you can realistically afford to pay towards your debt each month.
2. Consider consolidating your debts
If you’ve got multiple credit cards and personal loans outstanding, it can get quite complicated to track all your debts and their respective payments. Consider consolidating your debts into one.
3. Use an online comparison tool to get a better deal
If you’ve decided that debt consolidation is the way to go. Make sure you’re getting a better deal by using an online comparison service to compare the offers in the market.
4. Set up direct debits
Comprehensive credit reporting information is now being reported on your credit file, so any late or missed payments to licenced credit providers from the last 2 years can now be recorded on your credit file and can impact your credit score. Set up direct debits so that your payments are made automatically!
5. Pay more than the minimum
If you’re really serious about paying off your debts, consider paying more than the minimum amount each month. Credit card minimum repayments are around the 2% range and it could take you years to pay off the balance. Where possible, pay more than the minimum! If you’re paying off a personal loan, just double-check that there are no fees or penalties for making extra repayments or paying off your loan early.
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