Become debt-free

Are you knee-deep in debt? Here’s how to get your finances back on track

Are you knee deep in debt? Here’s how you can get your finances back on track:

 

Always prioritise your debts, making sure you have enough to pay rent, taxes and utility bills before anything else.

 

As for non-priority debts – credit cards, personal loans and the like – make a list of all the money you owe and the interest rate you are paying on each debt. Put them in order, with the loan or credit-card balance on which you are paying the highest rate of interest at the top. Then put whatever spare cash you have each month towards paying off your debts, starting at the top and gradually ticking them off as they get repaid.

 

It’s better to put off saving until you have repaid your debts, as credit costs more than you can earn in interest from savings.

 

Also read:

Take control of your finances

Spend wisely

Three ways to shop for less