Getting out of Debt Step-by-Step

Like most things in life, beating the burden of debt is easier said than done. Mounting bills, interest and repayments – as well as the stress that comes with them – can seem unmanageable at times.

The only way to start tackling your debt is by taking small steps. Organise your paperwork, do some initial calculations or just talk to a family member or financial professional. Above all else, don’t be defeated by the stigma that comes with debt.

Financial problems are something that can affect everyone and they often hit responsible working families the hardest. Keep your head raised high and consider some of these steps for beating debt.

Getting out of debt

 

 

Organise Your Financial Life

Taking the time to write everything down can be a great way to make your debt more manageable. Make a list of your loans, debts, household bills and other measurable expenses. Remember to include the payments you might not even consider, like loans from a family member or mobile phone bills.

Determine what you owe, when it’s due, and how much interest applies to each payment. This can seem deflating at first, but once you’ve got a complete picture of your debts you can start reducing and eliminating them.

Also, take the time to figure out your family earnings to get a general idea of how long it will take to get debt-free.

 

Reduce Your Debt Instantly

Take a look at the interest rates on your debts and find out how much lower they can be. You may be able to achieve a lower interest rate on your credit card, home loan or other major debts.

Talk to your financial institution or an independent professional about refinancing loans, debt consolidation and other financial strategies. The best approach for you will be a tailored one, but lowering your interest rates is always an excellent first step.

 

Make Budgets and Set Targets

Making a budget can be a little bit different when you’re in debt. As well as balancing your incomings against your outgoings, you should also be targeting your debts. To set your budget:

  • examine your regular expenses and eliminate unnecessary spending
     
  • create a realistic budget that you can spend on the necessities – budgeting means living below your means, so keep this in mind when prioritising your expenses
     
  • use all leftover money to target debts, starting with the largest debts and the ones charging the most interest
     
  • determine how long it will take to pay-off each debt with the money available and celebrate when you succeed

 

Use “Free Money” for Debts

Expecting a generous tax return? Received money as a prize or a gift? It can be tempting to spend this "free money" on yourself but it's a great way to pay off your debts faster. If you come into extra money, use it to make lump-sum payments and reduce your debt. The quicker each debt is paid off, the less interest it accrues and the less money you pay in the long term.

 

Consider Responsible Pay Day Loans When You Need Support

Taking out long-term loans is not always the answer to paying off your debts. A smaller fast loans that you can pay off quickly might be the perfect solution to bridging the gap. A payday cash loan can get you through a tight spot and your loan doesn't drag on "forever".

If you’d like more information on responsible short-term loans in New Zealand, talk to a team member at Chequers Finance today.

 

 

Back to News

Like most things in life, beating the burden of debt is easier said than done. Mounting bills, interest and repayments – as well as the stress that comes with them – can seem unmanageable at times.

The only way to start tackling your debt is by taking small steps. Organise your paperwork, do some initial calculations or just talk to a family member or financial professional. Above all else, don’t be defeated by the stigma that comes with debt.

Financial problems are something that can affect everyone and they often hit responsible working families the hardest. Keep your head raised high and consider some of these steps for beating debt.

Visit us at any of our branches:

Auckland Rescue Helicopter Trust Corporate Supporter 2013 / 2014

Chequers Finance Hamilton

Caro House
137 Alexandra Street
Hamilton
Phone: 07 838 2939

Chequers Finance Henderson

334 Great North Road
Henderson
Auckland
Phone: 09 836 6201

Chequers Finance Papakura

155 Great South Road
Papakura
Auckland
Phone: 09 299 7883

Chequers Finance Otahuhu

13 Criterion Street
Otahuhu
Auckland
Ph: (09) 276 4384