Getting yourself out of debt.

If you’re struggling with debt and you feel that you’re in over your head, you need to think carefully about your financial direction. Here’s a simple plan that will get your debt under control:

– Consolidate your debts into the one with the lowest interest rate. This could be your home loan where interest rates are the lowest. When it comes to credit cards, keep just one with the lower credit limit and destroy the rest.

– Now, there is no point in completing Step 1 without creating a budget to ensure that you’re living within your means (where your income is higher than your expenses).

– Seek professional help with a financial adviser who can help you clarify your financial goals and work out a plan that suits your finances and lifestyle.

– Don’t borrow more unless it’s for a productive purpose such as investing or building future profits. Before borrowing, make sure you have a realistic plan for paying the money back.

– Don’t worry about ‘keeping up with the Joneses’. This is a deadly mindset that often leads us to borrow what we can’t pay back.

– For businesses, managing debtors can make or break a business. Be prompt when invoicing; if you are slack getting invoices out, customers will assume you are not in a hurry for payment.