The secret to removing debt is simple – when you receive your salary (or any income), “pay yourself first”. When planning your monthly budget be sure to include some money for savings and some money towards settling any debt you may have. The financial choices you make monthly will add up over the years.
If you have some debt – it’s achievable to reduce it, and ultimately settle it all. Instead of thinking of your debt as one imposing lump sum, rather break it down into smaller, more manageable pieces. The key to being debt-free is to remain consistent and disciplined.
Here are a few tips to help you on your debt-free journey:
Interest charges cost you more than you may realise
Making purchases on your credit card, via a loan, or a bond all contribute to an increased interest rate. Interest charges are often as much as the original loan amount. So an easy way to reduce and manage debt is to pay more than the required payment – helping you to save on interest.
Cut your expenses
The key to this tip is to review what your expenditure is each month and to be honest with yourself as to the necessity of each line item. Be strict with yourself on where you spend your money, and what you spend it on. It’s a delicate balance between enjoying your lifestyle with ensuring you are saving for the long term.
Sell quality household items of value you don’t need
Take some time to go through your cupboards, your storage boxes, and the garage – we usually have items lying around that we don’t need or use – and wouldn’t notice if they weren’t there anymore. Why not sell those items to your nearest Cash Converters store for extra cash – and use some of this towards paying off some debt?
Each of these steps will help you to achieve your goal of reducing and eliminating debt. Remember – consistency is key!
Looking for a free credit score check? Visit your nearest Cashies store today.