Steps for managing debt


Managing debt can be one of the most freeing and rewarding things you can do for your financial health. Learning how much you owe in total and what your debts are before you start organising your finances is a good way to have a clear guide for your debt management.

Don’t fall behind on bills:
Staying on top of your bills can help to avoid snowballing debt. Making at least the minimum payments on your debts, such as your credit card, and trying to avoid missing monthly bills can help keep you on top of your funds. Using a calendar can assist with keeping track of your bills and help you to plan ahead, ensuring you have money available when it is needed. Setting up automatic payments is another handy way to make sure all bills are paid on time.

Prioritise debts:
Not all debts are the same priority for you to pay at a certain time. Planning the order in which you address your debts can help you to avoid extra fees and interest. You could consider paying those with the highest interest rate first, or paying off the smallest debt to get it out of the way. Regardless of the order in which you pay of your debts, making minimum repayments is critical to avoid late payment or default fees.

Sticking to a budget helps you to prioritise your necessary expenses while still saving some extra money. Create a realistic budget that you know you can stick to and allocate a portion of your income to save for an emergency fund. An emergency fund can provide you with enough savings to cover any unexpected expenses that may arise. A budget also helps you plan for any excess money you may have left after expenses are covered. You could possibly use any extra money to pay off debts faster.


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