Are you looking for ways to help you get on top of your financial obligations? Here are MoMa’s seven tips and tricks on how to reduce debt that actually work.
Unfortunately, among many Australians, debt has become the norm. It’s extremely hard to save for something of importance when you’re paying large sums of money a year in personal debt interest costs.
However, you can break the vicious cycle. Here we have listed 7 savvy ways that will reduce debt and have been proven to work. Let’s dive straight in.
1. Stop spending and make the most of every dollar to reduce debt
Easier said than done, right? Create a budget for yourself, this will eliminate excessive spending and will highlight exactly where you are going wrong but will indicate what you are doing right.
2. Do you have a side hustle?
Consider all your skills. Could some of these skills be used on the side as a side hustle? A side hustle can be as simple as selling old clothes or unwanted ‘things’ around the house. It could also be doing web design part time as a freelancer.
Side hustles are anything that doesn’t exhaust you, but you have time to do with ease. Other examples consist of personal training, manual work as well as working at a pet service.
3. Plan and budget to reduce debt
If you fail to plan, you are planning to fail. If you can plan ahead and create a budget, you will always be on top of your financials. Budgeting gives you 100% control over your money. It will open your eyes to the full scope of your financial position and will keep you accountable. Not only will it keep you accountable with your financials this will also reflect on other vital areas of your life.
4. Rely on yourself
Relying on yourself is a huge one when it comes to getting out of debts, quick too. Could a side hustle be the answer to all of your concerns? You may even have a passion that coincides with one. For example, an animal lover could open up a grooming service.
5. Consider debt consolidation
This may help depending on your specific situation and finances. Debt consolidation can be great for certain people especially because it makes your tough situation easier and quite often you will end up paying way less than what you were struggling to pay before.
6. Know your who, what, when, where, and WHY to reduce debt
Having a reason to get out of debt is always so important. It does not matter if the goal is short or long term just having that WHY will back you the whole way through. Your goal could be as simple as a small holiday or it could be as big as putting a down payment onto your first house.
7. Treat Yourself
Treating yourself reduces stress. Reducing stress is extremely important when you’re going through financial hardship. Keep it simple, don’t restrict yourself or you become so unhappy. Get the help needed and always plan ahead.
If you liked our “7 Savvy Ways To Reduce Debt” and took away some valuable information, check our blog space regularly for more updates on getting out of debts, debt consolidation, debt counselling, and budgeting in general.