Here in Australia, personal debt has reached record levels and people are scrambling to find ways to make their way out of the red.
Whether it’s loans or credit cards, a lot of Australians’ shoulders are weary from carrying the heavy burden of compounding debt, and are struggling to keep their heads above water.
And you are not alone with this dilemma. Check out these eye-popping numbers:
Australia’s combined credit card balances accruing interest.
Total household debt
Time it would take to pay off a $4,400 credit card balance making only minimum payments.
What does it take to get out of debt?
Getting out of debt takes strong commitment, discipline and the right information. Yes, it does sound like it’s a lot of hard work. In fact, the toughest part might be making the call to make a change and finding the right kind of help to guide you through the process.
Which brings us back to your question. What would it take to get out of debt? There are no easy answers nor are there quick fixes to this. And while it would take a lot of work on your end, the rewards of being free from debt is priceless
The process of getting fit financially can also be rewarding in itself. Your goal should not just be to get out of debt, but to firmly grab hold of your finances once and for all.
How to break the debt cycle
An effective way to shatter the debt cycle is to gain a comprehensive understanding of your financial condition and the options you have. A detailed, long-range personal budget would indicate exactly where your money is going, how it could be allocated better and how to go about paying off your debt without crippling you.
Budgeting is also the definitive financial tool. It can be the only way to pay off your debt while making your way towards sustainable financial goals
Are you having trouble catching up with debt payments? One of the best ways to give you some breathing room is to simply contact your creditor. Here are some tips on how to go about that.