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6 WAYS TO PAY OFF DEBT FASTER

Feel free sooner.

By Donna BolchPublished 4 years ago 3 min read

1/KEEP A BUDGET...

Make a spreadsheet on office or excel, or find a notebook and write down exactly what you spend each month and work out where you can cut back and work out an amount to pay off your debt each month.

2/OPEN A SAVINGS ACCOUNT DEDICATED TO PAYING OFF DEBT WITH SMALL INCREMENTS.

What i have done is opened an account in the same bank of our homeloan and i check my bank balances each day or every few days to make sure bills and things have come out .

If for example i have say 54.65 in my everyday account and IF I CAN AFFORD TO ,i will transfer 4.65 to my savings account to round it off to 50 . or sometimes even just the .65 cents to round off to the nearest dollar...54.00

Once the money is in my savings account i will transfer half of that 4.65 into my loan and leave the rest in the savings account.This way i am saving for emergencies and paying down debt a little at a time..sometimes i put more but its what you can afford at the time that matters.Every little cent counts. And its amazing how quickly it adds up.

3/ OPEN AN OFFSET ACCOUNT AGAINST YOUR LOAN

If you have a home loan ,when you have an offset account against your loan the more money you put in it ,the less interest that you pay on your loan.

And if you end up with the same amount of money in your offset account ,that is owed on your loan .then you dont pay any interest and then when you make your usual repayments more is paid of the principal, so that takes years off your loan..

(again you could do the same as point no 2)

4/WHAT EVER COINS YOU HAVE IN YOUR PURSE OR POCKET AT THE END OF WEEK..PUT IT BACK INTO YOUR LOAN

Even if its a small purse full of 5 cent pieces that add up to $3 dollars..every bit counts.

5/IF YOU OWE MONEY TO FAMILY, FRIENDS, OR BILLS...

Try and work out a payment plan..dont be scared..just ring and ask..

work out a weekly monthly or yearly amount and arrange a time that you can pay it in installments.

6/DONT GET INTO DEBT IN THE FIRST PLACE IF YOU CANT AFFORD IT.

there is good debt and bad debt.

Good debt would be an investment property, education fees, etc.

You can claim the investment property charges back from tax and get paid rent.

Credit cards can be both good and bad.

If you can afford to pay them off each month then your credit rating will be high, but if you only pay the minimum amount each month then your large or small purchases could end up costing you a lot more than you got them for in the first place ,due to the incredibly high interest rates that you would be paying.

If you are using something like afterpay where a quarter of what you owe comes out of your account fortnightly, make sure you are going to have that money in your account by the due date or you will be charged a fee on top of what you owe.

An idea is to write down or put on a spreadsheet when each amount will be deducted so you will know whether you need to cut back on anything in order to afford to pay it.

I AM NOT AN EXPERT..I AM JUST SHARING IDEAS ON WHAT I DO IN MY LIFE TO TRY AND BE DEBT FREE SOONER.

personal finance

About the Creator

Donna Bolch

i am the very proud mother of two incredible humans,and the wife of a wonderful husband of more than 20 years,.

i suffer from fibromyalgia and functional neurological disorder.

I love photography, and reaching my goals.

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    Donna BolchWritten by Donna Bolch

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