Oct 01

Spring clean you finances

Is debt ruling your life?

Student debts, credit cards and personal loans can be a source of unnecessary stress and prevent you from enjoying other things in life.
Clearing your debts doesn’t have to be hard work. With the right advice, it’s possible to get your finances on track sooner than you think, meaning you can get back to living the good life, guilt free.

Here are some tips to help you get out of debt.

Plan your budget

Achieving your goal of being debt free doesn’t have to be daunting; a good way to start is with a budget. Keep a diary of your expenses and your spending. This will enable you to track where your money is going and how much spare cash you can use to attack your debt.

Pay extra

Try paying more than the minimum off your debts to bring your loan down faster. Prioritise all your debts by the interest rate you are paying. Try to get the balance down on high interest debts fi rst, as paying these off fi rst will save you more money. You can then use the money you save in interest to pay off your lower priority debts.


Consolidate all your higher interest debts into one lower interest debt. This could be in the form of a low interest rate credit card or a personal loan. This strategy will also reduce your interest repayments.

Ensure you have the right card

Due to the increased level of competition in the credit card space, many lenders are offering much lower interest rates and deals.

When doing your research, make sure you read the fi ne print, as cards offering low or zero interest rates on balance transfers, do so for a limited time only whereas other cards might offer a low interest rate for the life of the transfer.

Become card free

Once you have selected a low interest rate card to transfer your balance, make sure you don’t use that card for any new purchases until you have paid off the full amount from the initial transfer.

Take the first step

If you’re having difficulties repaying your debt, take the first step and speak to your lender. If you’re open and honest with your lender, you will probably find they are open to review your repayments and look at other solutions to help you out.

Speak to a professional

If you feel that you are struggling with your finances, speak to Leenane Templeton's financial planner for help with a financial strategy that can get you back on track. Call us today. Also feel free to 'Like' us on Facebook for additional blogs, posts, event information and more.

Source: IOOF, January 2013

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