13 May 2019

Feel freedom after defeating debt

If you’ve taken a look at your finances recently, you may have found yourself with a few debts. While it’s possible to pay them off by simply keeping up your minimum repayments, you may want to get them sorted quicker.

If so, here’s a few simple steps to help you pay off your debts sooner and strengthen your savings.

Know what you owe

The first step to get started is to know what you owe. This means making a list of all of your debts, and the interest rates of each. Make sure to organise them from the largest interest rate to the smallest. You’ll probably want to repay the higher interest debts first, because they can cost you the most to borrow over time.

Once you’re clear on your repayments, and where most of your repayment money is going, you’ll be ready to create a plan.

Make some cut-backs

When it comes to saving money, it’s important to identify where you could cut back your spending. It may feel tricky, but to get your debt paid off faster, you need to be on-top of your outgoings. So, make a list of all of your spending to see where you could make some cut-backs, and free-up some cash.

Set a budget

Once you know how much you owe, and where you can make cutbacks on spending, you can give yourself a budget to work with each month. You may find budget calculators helpful, because they can do a lot of the hard work for you. Through following your budget you may be able to free-up some extra cash each month to put towards your debt, additional to your minimum repayment.

Grow your savings

It may sound silly to start saving when you’re focusing on making repayments but once you’re in a rhythm, it’s time to think about the future. In order to become (and stay) debt-free, you need to  stay in control of your spending. A great way to do that is to have a little rainy day fund set aside for unexpected circumstances.

So as you start making repayments, pop a little extra into your savings account, to get yourself going. If you bank with ING, a Savings Maximiser is a great way to get started, and keep you going strong.

Defeating your debt quickly may feel like a battle, but with these simple steps you’ll be on your way to declaring victory faster than you think.

The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Deposit products, savings products, credit card and home loan products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. ING Living Super (which is part of the ING Superannuation Fund ABN 13 355 603 448) is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635. The insurance cover offered by ING Living Super is provided by Metlife Insurance Limited ABN 75 004 274 882, AFSL 238096. ING Home and Contents Insurance is issued by Auto & General Insurance Company Limited (AGIC) ABN 42 111 586 353 AFSL Licence No 285571 as insurer. It is distributed by Auto & General Services Pty Ltd (AGS) ABN 61 003 617 909 AFSL 241411 and by ING as an Authorised Representative AR 1247634 of AGS. All applications for credit are subject to ING's credit approval criteria, and fees and charges apply. You should consider the relevant Product Disclosure Statement, Terms and Conditions, Fees and Limits Schedule, Financial Services Guide, Key Facts Sheet and Credit Guide available at ing.com.au when deciding whether to acquire, or to continue to hold, a product. Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms https://www.ing.com.au/pdf/Social_Media_User_Terms.pdf.

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