Reducing debt is easier said than done. We all borrow money at some stage in our lives, whether it be to buy a house, buy a care or start a business.
Whilst debt leveraging treated as a useful wealth-building tool, in most cases reducing all debt will result in a higher standard of living. The lower the debt, the more disposable income you will have to enjoy the life.
How to Implement
- List all current loans, outstanding balances, and interest rates.
- Work out your total weekly spend on debt and interest paid.
- Consider debt consolidation if it results in reducing your regular interest payments and term.
- Contact each lender and ask for a better rate, or see a finance broker
- Increase your regular payments where possible to shorten the loan term.
- Look for any loans you might be able to remove immediately e.g a car lease. (You may be able to drop your car lease and buy a more affordable vehicle out right).
- Remove subscription services that you do not need to reduce monthly costs. E.g Netflix/ Foxtel
- Ask for reduced rates on your car, home, and life insurance.
