If you’re still chasing your tail from expenses over summer, now could be a good time to consolidate your debt into one lump sum.
During summer we like to spend time enjoying ourselves. The festive season comes and goes and we may have even taken a few weeks off to recover, replenish and revitalise for the year ahead. If you’re still chasing your tail from expenses over summer, now could be a good time to consolidate your debt into one lump sum.
Read on and follow these 5 steps to take control of your debt and achieve financial freedom!
Calculate it
If you’ve got at least a couple of credit cards and IOUs to your sister and Aunt Donna, now might be the time to get your calculator out to total how much you owe, as well as how much you can afford to pay back, depending on your circumstances. Check out our budgeting calculator to help you.
Use your savings
Some of us have a savings account with money stashed away for a rainy day. That rainy day may be upon you, and you may wish to put some of those funds towards paying off a high interest credit card. So long as you can afford to, why not put those savings to good use by lowering your debts, and then closing that credit card account.
Balance transfers
A balance transfer offer is a promotional offer where a discounted interest rate is available for a limited period of time for balances transferred from other credit card providers. Used wisely these can be a great short term strategy to help you get on top of your credit card debt. Your aim should be to pay off as much of your debt as possible during the balance transfer period.
Make sure you take the time to weigh up the costs, savings and features before rushing in to make a decision. One worth looking at is Summerland’s Rewards Credit Card, which is currently offering 0% interest for 12 months on balance transfers*.
Personal Loan
Another option to consider is a personal loan, which may offer a lower interest rate than a credit card. In addition, being able to consolidate your debts into one personal loan makes it easier to keep track of your debt, also meaning you’ll only have to make a single repayment.
Summerland’s personal loans also offer fast approval and additional lump sum payments without any additional fees being incurred.
Consult a free financial counsellor
If you’ve tried all the steps above, you may wish to talk to a free financial counsellor. The Australian Securities and Investment Commission’s (ASIC) Money Smart website has information on how to find your local financial counsellor here.
The Money Smart website suggests that when it comes to getting on top of debt, the most important thing is to make a start. Take the time to assess your circumstances and consider the options that will work best for your situation.
