Sometimes being a control freak is a good thing! Especially when it comes to being in control of your debts.

For those of us with a mortgage, this often represents your single biggest debt. Or perhaps you have amassed credit card debt through months and even years of unhealthy spending habits? The first step is to improve your cashflow is to reduce your debts and the associated expenses by using any surplus you have or can create and redirect this towards reducing your debts. Over the long term you will ultimately save more.

对于我们这些有抵押贷款的人来说，贷款通常是最大的一笔债务。也有可能由于长年累月不健康的消费习惯，您的信用卡累积了一些债务。掌控债务的第一步是改善您的现金流，通过利用您拥有的或可以创造的任何现金盈余来减少您的债务和相关利息费用，扭转债务累积的趋势。从长远来看，您最终会省下更多钱。

Review your loans on a regular basis. Call your bank to attract the best terms and interest rate. There are comparator sites available and by drawing a comparison with other bank rates can also help you better understand if you can realistically reduce your interest rate. You could look at making some small changes, like increasing the frequency of your repayments (for example from fortnightly to monthly) or repaying an extra amount every month. These small steps can help you speed up the rate of repayment of your debt, reduce your interest payments and mean more money in your pocket!

A few key points to consider when getting in control of your debts:

  • Given the high amount of interest charged, credit cards should be repaid as your first priority. Compounding interest can be very positive when it comes to accelerating your earnings on when it comes to your assets and conversely it can result in a terrible outcome on unpaid credit cards, accelerating the interest payable!
  • Call your bank and draw a comparison with other banks and their respective interest rates. This will help you better understand if there are options to reduce your interest rate.
  • Consider increasing your loan repayment frequency. For example, from monthly to fortnightly. This will speed up your repayment and save you interest.
  • Where your budget permits, consider making additional repayments, even if it seems small, it will help you repay your loan quicker and it all adds up!
  • Consider the option of fixed rates and whether it makes sense for you. This will help you manage to your budget and plan ahead.
  • Consolidate your debt. If you have several credit cards, seek to understand if you can combine it all under the one provider. Taking some time to consider whether this strategy might result in a lower interest rate for you.

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