Taking control of debt in 2021

Now that 2020 is rapidly disappearing in our proverbial rear-view mirrors, there’s no better time to start fresh and put a plan in place to conquer debt in this new year. Here’s how you can show your debts who’s boss in 2021. And beyond.

 

This year, show debt who’s boss

Maybe it was those lobster tails for Christmas lunch, the (well-deserved) holiday rental by the sea or that perfect gift for your partner (that you can use too). Or perhaps your debts have been adding up over time, with a small personal loan here and a few big credit card purchases there to get you through any recent tough times. Whatever might have caused your debts to mount, it might be time to start taking control.

 

Eight tips to show debt who’s boss

  1. Create a budget. Create a budget. Yeah, yeah, you’ve heard it before, right? But a budget is the simplest, smartest way to get a handle on your money. Our budget planner makes it easy.
  2. Be careful with credit. Credit cards are convenient. To avoid interest, just be sure to only spend what you can afford to pay off fully each month.
  3. Get smart with debit. If you want more control, a debit card lets you buy things just like a credit card – but you’re using your own funds rather than borrowing money.
  4. Have a hit list. So that you know what you’re working with, list all your debts, what their interest rate and fees are, and how much you owe for each one.
  5. Roll your debts into one lower-cost loan. Something like an ING Personal Loan could help you save on interest and fees so you pay off your debt sooner.
  6. Pay more. The best way to get ahead of your debt is to repay more than the minimum amount when you can. Just make sure you won’t be charged early repayment fees first.
  7. Ask an expert. A financial adviser can help you set goals and give independent advice on managing your money and debt. Find licensed advisers in your area at fpa.com.au.

 

Get a better read on debt

Once upon a time, finance was a closed book. But today you can find lots of books about managing money in the personal finance section of any bookshop or library. You’ll also find an increasing range of resources about money written specifically for kids, young adults, growing families and women.

Whatever you choose, just check the publication date to make sure it’s up to date and is relevant to Australia’s financial system.

You can also grab a copy of ING’s guide to taking control of debt. Whether it’s for you or someone you know, in just a few minutes the guide will explain what debt is, how and when to use it, when it’s best to avoid it and how to get help if you need it.

 

You don’t have to do debt alone

While financial hardship can feel quite isolating, you’re not alone. There are resources and services available to help you get back in control.

MoneySmart is a well-regarded government website run by the Australian Securities and Investments Commission. It has heaps of handy information about a wide range of money matters.

More specifically, the National Debt Hotline is a not-for-profit service dedicated to helping people who are tackling debt. As well as free guides, the service offers a referral service that can connect you with one of 850 free financial counsellors Australia-wide. Call them on 1800 007 007 or visit ndh.org.au.

Finally, if you’re an ING customer and finding it hard to make repayments, our ING Financial Support Team may be able to help. For your options, check online or call 1300 349 166.

ING is not affiliated with third parties mentioned in this article.  ING is not responsible for any services provided by third parties nor does ING accept any liability or responsibility arising in any way from any products or services supplied by the third parties.

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 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.

Related articles

Smart Credit
Loading...
Share
Loading...
XS
SM
MD
LG