Making Your Future a Success

Making Your Future a SuccessMaking Your Future a SuccessMaking Your Future a Success

“Financial peace isn't the acquisition of stuff. It's learning to live on less than you make, so you can give money back and have money to invest."

Reducing Debt

Recognising Debt

The first biggest step you must take is to be completely honest with your situation, if you are not honest it will be impossible to move out of debt. 

Ensure every debt you have is recorded on your budget, leave nothing out. In some ways it feels good to do this because you now know what you are truly facing, no hidden secrets!

How to Reduce Debt

The debt snowball method is a debt reduction strategy where you pay off debt in order of smallest to largest, gaining momentum as you knock out each balance. When the smallest debt is paid in full, you roll the money you were paying on that debt into the next smallest balance. 

Here are the steps:

Step 1: List your debts from smallest to largest regardless of interest rate. 

Step 2: Make minimum payments on all your debts except the smallest. 

Step 3: Pay as much as possible on your smallest debt. 

Step 4: Repeat until each debt is paid in full.  

Seeking additional help

For additional support you can visit the government debt helpline website