The first thing you need to do is acknowledge the debt you have owing and make the conscious decision to pay it off. Getting out of debt is your responsibility, and one you need to take control over.
Start by finding out exactly just how much debt you owe, allocate this into a weekly or monthly budget. This will allow you make your debt a priority, allocating a set amount of money from your income towards your debt. If you’re new to budgeting, you can click here to find out how to track your spending.
How do I get out of debt?
- Group your debt together so you know exactly how much you owe.
- Compare your debt with your income.
- Create a budget that prioritises your debt on a monthly basis.
- If you can afford it, pay more than the minimum payment.
- Contact your creditor to see if they can lower your interest rates.
- Ask yourself if there is a way you can earn more money. For example, picking up more hours at work.
- Save where you can, pack lunches, make coffee at home etc.
If you have exhausted the above tactics but still find yourself unable to make payments, it’s time to ask for help.
Credit Counsellors Australia 1300 003 328
National Debt Helpline 1800 007 007