Savings V Debt

Household finances around Australia have taken a battering in the past few years.

Higher interest rates, bigger mortgages, record levels of personal debt and larger grocery bills are all affecting our capacity to save.

Nationally a survey found less people were prepared to commit to saving for expensive items. Saving is down 14 per cent from 24 per cent for home reno’s, saving for travel is also down from 45 per cent to 38 per cent.

To reduce your debt there is a few things you could try like refinancing your higher costing debt into your lower home loan rate.

Also cutting up those cards is a good idea and making a promise to yourself to start paying them off one at a time.

When faced with multiple debt the easiest way is to deal with one debt at a time. You will be surprised how much quicker repaying one will be, instead of spreading your money thin across multiple larger repayments, only to find you need to spend it again before the end of the month.

Every time you reduce your debt on your credit card call your institute and get them to lower the limit if you would like to keep your card active.

Instead of cutting your card up you could also simply take it out of your wallet and leave it somewhere safe at home so you really won’t be tempted to impulse spend.

If  your debt is starting to overwhelm you there is a lot of  advice on offer an it would be worth contacting someone who could help.