Debt Free Australia - Top Tips to becoming Debt Free

Become Debt Free
The First Step to Financial Freedom

Take the First Steps Towards Becoming Debt Free! Start Today!
Are you tired of being in debt and struggling to keep on top of your finances? Do you want to change your situation and take the first steps to financial freedom? Are you tired of arguing about money? Don't let poor credit or unpaid bills ruin your financial future, take control of your situation and get back on top!

The information on this page is intended as a helpful guide to assist you in planning and taking positive steps towards finding a solution to your current financial problems. We understand that each individual situation varies so the information here is intended as guide only to get you started and motivated, so for specific advice for your situation complete the no obligation enquiry form or contact your personal financial advisor.

Debt Free Tip No. 1: Refinance Your Home Loan
If you currently have a home a loan and even if you have defaults or bad credit, refinancing may be a solution to amalgamate debts, reduce interest payments and give you immediate relief. Complete the following enquiry form for a no obligation discussion about your Home Loan Refinancing options.

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Debt Free Tip No. 2: Create a Budget

Creating a budget is a vital part of becoming debt free. Understanding what your income and outgoings are and taking more control over your spending is core part of becoming financially strong. A simple budget is how much money you are earning minus how much you are spending plus what your expenses and financial obligations are. Doing a budget is great way to get a good look at where you can reduce you outgoings.

Debt Free Tip No. 3: Take Control of Credit Cards

Stop spending on credit cards. Aim to be reducing your balance every month rather then increasing it.
Pay off more the minimum.
Consolidate your credit card debt. Take advantage of 0 Balance transfer offers to reduce the amount of interest you are paying.
Cut up credit cards so you are not tempted to use them. You only need to have one for emergencies only.
Use EFTPOS or Debit Cards or Cash to pay for day to day expenses.
Set the goal to aim towards paying off your credit cards in full each month.

Debt Free Tip No. 5: Reduce Outgoings & Expenses

Reduce your electricity bill by turning off lights and electrical goods at the power points when not in use. Use the close line not the dryer.
Plan healthy meals and purchase food for your meals. Reduce waste and get organised.
If you live with flatmate's, encourage everyone to contribute to the reduction of expenses, saving the environment and reducing penalty fees by paying for the shared household bills on time.
Shop around for good value phone plans, especially for you mobile. Reduce your phone calls to ensure you stay within set call limits. Even if you are on a plan call your service provider and find out what your options are.
Don’t pay for services you are not using. If you have Pay TV reduce your plan and use the money you are saving to pay off other debts.
Return videos. Don’t waste money on late fees.
Don’t waste money. Carefully plan purchases, shop around for competitive prices.
Stop smoking and drinking and save.
Reduce the amount of money spent on takeaway food and also reduce your waistline.
Do not lend money if you are in debt. You can't afford it.
Sell items you are not using that may be of value to others.

Debt Free Tip No. 6: Don't Bury Your Head in the Sand

Some companies will charge you late fees for paying bills late. If you need to play catch up eliminate all non essential spending until you are up to date with your bills. Pay your bills on time and plan for them to ensure you are never caught short and reduce disputes and stress.

Can’t Pay Your Bills?
When are you in trouble and can’t pay your bills, don’t bury your head in the sand. Call each one of the providers and let them know of your financial situation and ask for a plan to make regular part payments or give an expected date that you realistically think you can pay the bill by. This is especially important if creditors hold security over your home, car or other assets. Confirm agreements in writing if possible. Collate all your overdue bills and work out your payment plan today!

Debt Free Tip No. 7: Look for Opportunities to Increase Income

Look for opportunities to increase your income.
Take on a part-time job, do some overtime or look out for other opportunities that suit your skills and abilities. Examples of part time odd jobs that may be suitable to you could be: baby sitting, lawn care, dog walking, pet minding, market research, paper delivery runs, cleaning or ironing. Use the extra money to pay off credit cards or other debts.
Look in the classified section of your local newspaper for more casual work opportunities.
Take on an extra shift at work or follow up on the pay rise if you are due.
Be open to new opportunities and positive about the skills and contributions that you can make to society.

Debt Free Tip No. 8: Spending is Not a Sport

Although there may be some instant gratification when making new purchases, it can all fade pretty quickly when bills and credit card repayments continue to build. Getting organised about your spending will allow you to save up for the new items and prevent impulse buying.

Plan your for spending. Use your budget to plan for Christmas and Birthdays and so you never need to use the credit card. Break the debt cycle.
If you are an impulse shopper/purchaser do not go “shopping” as weekend leisure activity. Find other enjoyable ways to spend your leisure time
Limit your spending on non essential items until debts are under control. If you don’t need it don’t buy it.
Shop around and save. Do your research and make wise purchases.
If you are an impulse buyer, try to take your own lunch to work to mimimise opportunities for exposure to "bargains" and impulse buys.
If you can't afford something and are in debt put a freeze on all non-essential spending until you are in a better situation. Be strong.

Debt Free Tip No. 9: Set Your Goals

We understand the doing the bills isn't really a fun part of anyone's day, but working towards financial freedom can certainly be empowering and enable you and your family a better quality of life.

Add up all of your bills and outstanding debts and set goals to pay off credit cards and personal loans.
Set goals to encourage you to keep on persevering with saving and getting back in control. Plan future purchases or holidays or anything that will motivate you to be strong in getting back on top.
Set big goals about where you would like to be in the future. Think about the next five years and look at your finances and work towards big goals that will improve your quality of life.
Set goals about your health and spending quality time with your family. A brisk walk can do wonders for your mood and give you space and clarity to find solutions.
Talk about working towards goals so everyone in the family becomes enthusiastic about saving for something rather then negative about always being short of cash and on a "Budget".
Plan for future. Take superannuation and savings plans seriously. As little as $20 a week in savings can quickly add up. See your bank and ask about their savings plans.

Debt Free Tip No. 10: Don't Give Up

It can be tough trying to stay on top of things and there will be set backs but don't give up. Having a positive outlook and working towards improving your finances and quality of life makes for a better day. Make a commitment to yourself and be proud of what you achieve and celebrate as you work step by step towards becoming debt free! All of the small steps will add up! It is never too late to start!

Remember each individual situation varies so the information here is intended as guide only to get you started and point you in the right direction, for specific advice for your situation complete the no obligation enquiry if you own a home or contact your personal financial advisor.