Have you ever imagined what your life would look like free from debt? Have you ever considered the possibility that freeing yourself from debt is a real option for you? For many people, living debt free is a pipe dream but with the right tools and firm commitment you can prevent the slide into further debt and avoid the strain on your work performance, your relationships and your health. You can use some simple tools for managing debt.

Signs you need to start managing your debt

Some of the common signs include skipping your monthly payments and delaying paying your bills because you’re concerned your money won’t cover your debts. Are you using your credit card to pay for necessities because you don’t have enough money in your savings account? 

How to work out how much you owe

Use the net worth calculator to work out what you own and what you owe, and to determine the strength of your financial situation.

This tool will tell you if you should be managing your debt repayments well or are experiencing financial stress. All is not lost, however, take these steps to manage your debt and pay it off quicker.

Four simple debt-reduction steps

1. Make a list of your debts and pay off the ones with the highest interest first.
2. Pay at least the minimum payments, which will keep your debt from growing. The more payments you miss, the harder it will be to catch up.
3. Create a monthly bill payment calendar to work out which bills to pay with which payslip. On your calendar write the bill payment amount next to the due date.
4. Create a monthly budget to plan your expenses in advance and take action earlier if you can see you won’t have enough money to cover next month's expenses.

You can also use some online financial tools to help you manage your debt and plan your finances.

Quick tools to help take care of debt and monitor your finances

• Goodbudget helps you plan for big expenses and stick to your monthly budget. Allocate your money to different categories and you'll lessen the ability to impulse buy. The app will alert you when a particular category is getting low on funds.

• Pocketbook keeps track of your money by grouping it into different categories, such as groceries and travel. Every time you withdraw money from your account, Pocketbook will notify you, so you can keep a close eye on your expenses and any duplicate charges.

• TrackMySPEND allows you to create different expense categories and then map your expenses against your targeted savings goals. You can separate your personal expenses from other costs and monitor your spending on needs and wants.

Free up money in your budget

If you’re looking for an immediate solution that will free up money in your budget, consider mortgage refinance. Mortgage refinance can lower your monthly mortgage repayments, helping you to manage your current expenses.

Another action you can take is to consolidate your loans to pay them off sooner. When fixing bad debt, these simple hacks for how to improve your credit score may help. 

If you’d like to know more about how mortgage refinance can assist you with debt management, contact us today.

Disclaimer: The information provided in this is article is general in nature and is not intended as financial or investment advice and should not be relied on as such. You should always seek your own independent advice from qualified specialists as per your own specific circumstances.