To help you dump your debts and ease the pain around your swelling credit card bills, we asked Rebecca Maher of The Fiscal Mum for her tips on how to get rid of toxic debt once and for all.
Out of control debts are concerning for anyone. Debt is a common cause of stress for many families. But putting off addressing these issues with your outstanding debts not only costs you money in interest and charges but also robs you of peace of mind.
To tackle the stress associated with your debt, here are six ways you could take back control of your finances and finally get rid of those pesky debts:
- Make a list of your debts and the amount of interest you’re being charged on each one. You need to know what you’re starting with.
- Prioritise paying off those debts with the highest interest rates, and move all you can to a zero percent interest credit card. Be aware that this rate probably won’t last forever.
- If you have more than one credit card, ask yourself whether it’s necessary. And then cut the others up if not.
- Create some realistic goals for paying off your debts and saving based on the budget you have created.
- Beware of the lure of shopping online. Start with a month long ban on buying anything online.
- Think about ways you can generate some extra income such as more hours at work, selling some valuables, or renting out a spare room or space in your home.
Ready to master your money? Become a Fiscal Mum with Rebecca Maher and sign up for her free eBook ‘The Top 30 Ways Every Family Can Save’
Tell us in the comments below, what’s the one thing stopping you from taking control and dumping toxic debt? Have you got rid of debt and found it liberating? Tell us your story.