1. Get rid of your credit cards
With all the unsolicited offers of easy credit, loans, store cards and credit cards that come through your letter box every day, getting into debt has become so easy.
- If you have store cards or credit cards, get rid of them! Store cards in particular have high interest rates
- Get into the habit of using cash instead of reaching for your credit card to pay for items
- Do you really need that item? Think before you purchase
- Stop overspending. Before you buy that new outfit, wait a day to find out if it is something you really need. Putting time and space into the equation can often make you realise that you don’t need that new outfit after all – even if you want it.
- Never impulse buy. Separate life’s necessities from your wants and desires so you can keep impulse buying in check.
- Write down what you spend. Use a budget planner so you can see where your money goes. Seeing it on paper can make you realise where you are going wrong, and help discipline your spending habits.
- The key to any debt management solution is budgeting and repayment plans. Commit as much money as you can to paying off debts with high interest rates.
- Firstly pay off debts with high interest rates or that put your home or assets at risk.
- Find an independent financial adviser to help you formulate a debt management strategy.
