How to tackle your debts for a savvier 2021
Are you still suffering from a debt hangover? Now that we’re at the end of the 1 quarter of the year, are you still having a hefty credit card bill from all the gift-giving, eating out, holidays, and other festive celebrations? Now, if you already have a mortgage or other loans that you’re trying to pay off, this can all become quite stressful!
Don’t fear! Xchange Finance have put together an action plan to help you tackle your debts. Read on!
1. Assess your debts & create a budget
If you have multiple debts outstanding (a credit card balance, car loan, mortgage etc.), gather up all the details so you can work out the total amount owing on each account, what interest rate & fees you’re paying, and how long you have to pay them all off.
Creating a budget is essential when you’re trying to pay down your debts. Figure out how much money you have coming in and going out each month, so you know how much excess you must put towards your debt. Be realistic with your budget and don’t forget that you change it as your circumstances change.
2. Assess your credit products
Once you have all the details of your accounts in front of you, you can begin to assess whether these credit products are the right fit for you. Maybe you have a credit card with a sky-high interest rate and could be better off with a balance transfer offer. Or maybe you have five personal loans on the go and could be better off consolidating them into one loan.
There is no “best”, one-size fits all product out there for everyone. The right product for you will depend on your personal situation, your credit score, how you want to pay off your debt, and your timeline.
3. Compare credit products
If you’ve decided that you want to switch up your credit products, connect with a finance broker to compare what’s available in the market. Here at Xchange Finance, you can compare a range of personal loans, asset finance and home loans all in one place.
4. Set up regular payments
Now that you have your payment plan in place, set up automatic, regular payments to the lender so that you don’t miss any of your repayments. Remember with Comprehensive Credit Reporting, your repayment history makes up a big part of your credit score!
Want to learn more about how you could manage your finances more effectively this year? Contact us today.