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How to Get Rid of Debt

By Administrator 10 January, 2017

If you are wondering how to get rid of debt, you have come to the right place. At Debt Free Australia, we are passionate about helping Australians become debt free for over 20 years and continue to do so. Based on our years of experience, we have compiled our top 5 tips on how to get rid of debt.

 

1.Make the decision to stop borrowing money

Stop taking out loans that you know you cannot afford to pay back and try to limit the amount of money you borrow from your family and friends unless it is an emergency. This will force you to face reality and see that you are running dangerously low on funds and that you need to make changes in your life to rectify this.

 

2.Work out how much in debt you are

It seems like daunting, difficult task to complete, and it is. However, it is crucial in helping you get out of debt so that you know what you are up against and what you have to do to fix it. Take time out to sit down and work out all your expenses, money that you are owed and bills you have to pay to gain valuable insight into your financial state.

After you have done this, organise your debts. Prioritise the ones you really need to pay first to the ones that you can put off for a bit longer. This includes debts with high-interest rates or mortgage bills.

 

3.Create a realistic budget

If you want to know how to get rid of debt, then an important step is to create a realistic budget. The keyword here is realistic. This means don’t go overboard with how much you are willing to cut out if you are unable to sustain it over a period of time. You are just setting yourself up for failure which will not only derail your chances of getting out of debt but is also disheartening and can cause you to become further dispirited. Instead, find the balance between creating a budget that you can sustain but also means that you are not spending more than necessary and saving money.

 

4.Explore debt solutions

If you are wondering how to get rid of debt and have already tried the other options, then it may be time to explore professional debt solutions. Each solution has its advantages and disadvantages and the one that you should take depends on your situation. It can be daunting and time-consuming process knowing which solution best suits your needs. This is why you should enlist professional help from debt consultants who can give you impartial advice so that your best interests, not theirs, are prioritised.

 

Debt Free Australia is a reputable company that prides itself on giving fair and unbiased advice for those who are wondering how to get rid of debt. We offer a range of debt solutions and will carefully explain each one to you so that you can completely understand your options and help identify which one you should follow. If you would like to speak to one of our trained consultants who can help you choose the right solution, then please contact us on 1800 676 598.