What to Do & What to Avoid When Getting out of Debt

What to Do & What to Avoid When Getting out of Debt

We’re almost a full month into the new decade! It’s possible that you are starting to struggle to stick to your new year’s resolutions and the goals you set for yourself to achieve in 2020 might be looking more and more difficult. It’s also tempting to give up and resign yourself to another year of bad budgeting with debt on your back.

But you don’t need to be stuck! Staying in debt isn’t the only option, despite any hurdles you might be facing.

The best way to set yourself up to succeed at your financial goals is to start and keep going, even if you hit a road bump. Follow these handy do’s and dont’s and get your finances on track to hit the green and avoid the red!

Don’t: Ignore your payments and hope they’ll disappear.

If you pretend it’s not there, it’s going to fade away, right? Not right. Unfortunately, the power of wishful thinking won’t make your payments disappear. If you ignore your debt, as tempting as it is, it will only get worse. 

Do: Tackle your debt with professional help

Face your financial fears and start paying off your debt one step at a time. Or better yet, get help and sign up for Debt Review!

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Don’t: Try and pay off multiple debts all at once.

Trying to tackle everything at once is an unsustainable – and harmful – way to try and make your repayments. Odds are, if you go all-in at once every month, you’ll come out at the end of the month having to borrow money anyway.

Do: Payback with a good strategy

Instead, rather focus on paying off the account that has the highest interest rate. That way, you’ll end up saving on the interest you would have had to pay back, and you can slowly start paying back the other accounts. 

It’s the age-old expression: How do you eat an elephant? One bite at a time. 

Get a good strategy with Debt Review

Don’t: Try and do it alone.

Owing money can be scary and finances give enough stress already without adding a lonely factor. 

Do: Be accountable to family and friends.

Instead of keeping your debt a secret, speak to your family and friends about it and get the emotional support you need.

Get expert advice from our credited consultants!