Tips for reducing debt
Having trouble cutting down or preventing debt?
Here are our top tips for reducing debt.
- Complete a budget so you know how much you have to spend every month – if you have a budget you are more likely to be successful at managing your debt. Use our handy budget planner.
- Choose the right kind of credit facility for your needs, be it a credit card, a personal loan, a store card or a debit card.
- Minimise the number of credit facilities you have eg. keep one credit card only, not three or four.
- Shop around for a good deal on your credit facility as interest rates, fees and charges can vary widely.
- Resist the temptation to increase your credit limit or the number of credit facilities you have.
- Always pay at least the minimum balance every month, but preferably the entire due amount.
- Never ‘max out’ your credit facility.
Debt consolidation should not be seen as a ‘complete fix’ and in fact will not work in the long term if you do not address the underlying reason behind your out-of-control debt.