Townsville Bulletin - - NEWS -

1. Face re­al­ity

Many peo­ple ig­nore their debt prob­lems un­til it’s too late. The worst thing you can do is ig­nore it, hop­ing things will work out. The sooner you act, the bet­ter off you will be.

2. Ask for help

If you’re in trou­ble, talk about it. Credit card com­pa­nies and fi­nan­cial in­sti­tu­tions will be much more le­nient if they know you’re try­ing to tackle it.

3. Con­trol your spend­ing

For the next month write down ev­ery­thing you spend, then ex­am­ine it. You’ll be amazed – and maybe a lit­tle hor­ri­fied – at where your money has gone, but you’ll think twice in fu­ture.

4. Stick to a bud­get

Bal­ance your fam­ily bud­get and de­velop a debt- re­duc­tion plan. The fastest way to pay off what you owe is to make ex­tra re­pay­ments.

5. Don’t fall in to the min­i­mum trap

The monthly credit card bill looks hor­rific, but you take com­fort in the much smaller min­i­mum bal­ance owed. Big mis­take. It will take years to elim­i­nate debts if you only make min­i­mum re­pay­ments.

6. Pay off your most ex­pen­sive debt first

It’s com­mon sense, but pay off the debt with the high­est in­ter­est rate first.

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