1. Make a budget

It’s pointless making a budget if you never follow it. Your budget needs to be specific, and you should be allocating your money (on paper) even before you get paid. This will help you prioritise your saving, even if you’re paying off debt. Budgeting has two purposes, first it will show where you spend your money, which may be a surprise ($5 coffees every day adds up!), secondly it provides structure to your plan.

2. Get a side gig

One way to get rid of your debt is to earn more money to pay down debt faster. If you have the time available, consider getting a part-time job, and devote the additional funds you earn to debt repayment. Thanks to technology, it’s easier than ever to find a side hustle to fit your busy schedule. Many people opt to work part time for driving services such as Uber. People with writing, editing, graphic design, or other skills can often find work using online freelancing services such as Upwork, Fiverr and others.

3. Debt consolidation

Another option to consider for getting rid of your debt next year is to consolidate it all. A debt consolidation loan will enable you to bundle all your outstanding debts into a new loan. Consolidating your debts into a single loan will make it easier to manage debt repayment, and you’ll likely enjoy a lower interest rate than you’re currently paying on your credit cards and other debts.

If you want more information on how we can reduce your debts by ½ or more within 3 weeks, then talk to us on 1300 490 030 or visit creditmediation.com.au, for more information.

4. Seek assistance

When it comes to paying off high levels of personal debt, you should never go it alone. Instead, seek out the support of trusted financial professionals to guide you through the process. For example, a financial counsellor can analyse your current situation, assess your debt, and help you determine the best strategy to repay it.

5. Use a debt negotiator

If you are in debt, consider using a professional debt negotiator. A professional negotiator will aim to waive half or more of your debt within weeks of negotiation. A negotiator will use their bank contacts, negotiations skills and knowledge of the NCCP codes and bank policy to leverage large debt write offs for their clients. Outcomes will generally maintain their clients credit report and should not cost you any upfront money to begin the process. All good negotiators will tend to put their money where their mouth is and charge a fee on success.

About the author

Laurence Hugo is the director of Credit Mediation Service P/L, he is a highly experienced negotiator with three decades of banking, debt management and marketing experience, Credit Mediation has successfully waived over $83 Million for their clients.

This article should not be considered legal or financial advice, but as a general guide only. If you are facing legal recovery action, please consult a legal attorney to assist you. For further information on how to have your debts cut by half or more through a specialist negotiator, reach out to us on [email protected] or contact us on 1300 490 030.