On a daily basis, most Kiwis face a high cost of living and unexpected expenses. New Zealand’s household has one of the highest debt levels in the developed world compared to the size of its economy. That’s a lot of debt.
Debt doesn’t have to be inescapable. Leave them behind with these tips to pay off your debt faster.
Why do Kiwis have a complicated relationship with money? This could be a symptom of a deeper problem.
Mostly, people use money to feel better for a while, which affects their financial happiness for the worst.
Just like any relationship, you must examine the status of yours with money.
- spending it correctly?
- throwing it away?
- using it to cope with larger issues?
Bet you could find a lot of reasons to make that next purchase. Debt that piles up for all the wrong reasons can lead to a vicious cycle that’s hard to break.
To move forward, you need to acknowledge this issue.
Consider a few of the following ideas to make more money:
- Pay rise or promotion — If you’ve been waiting, now’s the time to make a move to ask for a pay rise or a promotion.
- Turn a hobby into extra pay — Do you have a hobby? Perhaps you’ve been complimented on your craft projects. Turn these hobbies into money makers via Etsy, TradeMe, or Facebook groups.
It’s better to know how much you owe for you to pay them off effectively.
Gather all paperworks relating to your debts — overdue utilities, credit card statements, outstanding loans, etc. — to add up exactly how much you owe.
Write it down and put it somewhere visible to serve as your target.
Make informed repayment decisions once you know how much debt you’re carrying. You need a plan. Consider these options:
- The debt snowball method — The snowball method works by targeting your smallest debts first towards paying off your largest debts last.
- Debt settlement — a company has you stop paying your creditors and negotiate a lower payment.
- Debt management — a credit counseling company negotiates with your creditors to lower your monthly payments or reduce your interest rates and fees.
- Debt consolidation — Consolidation cuts down the number of payments you have to manage. To pay off your other loans, this program involves a new loan that carries a lower interest rate than your other debts.
As a credit card provides convenience, it can easily be used even for smaller expenses. Overtime, these small purchases add up, with you falling into debt unnoticed. Before you know it, you’re in trouble.
So, leave your credit card behind or cut it up.
Use cash instead. You’ll be more accountable as you see the cash slips through your hand.
A voluntary savings scheme, KiwiSaver is set up by the government to help with your retirement or if you’re buying a home. Once you’ve joined, you can make your contributions either directly to your KiwiSaver provider or through Inland Revenue.
If you’re experiencing financial hardship, you can apply for cash loans in New Zealand to have access to funds.
What makes PPL different from others in the industry is not only it’s competitive rates, but it’s fast and easy application process, which means you can get the funds on the same day.