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This week on Money & Investing, Mitch Olarenshaw and I discuss 5 strategies for paying down debt.

We set out to offer practical advice for those facing economic pressures.

1. Consolidate Your Debt

The first step to tackling debt is consolidation.

By combining high-interest debt into a personal loan with a lower interest rate, you can save money and make payments easier to manage.

However, it’s important not to accumulate more debt—stick to a cash-covered system.

2. Understand Your Spending Habits

Reflect on how you ended up in debt.

Were your purchases necessary, or were they influenced by other factors like boredom?

By adjusting your spending habits, you can help prevent future debt.

3. Take on a Side Hustle

Earning extra income through a side hustle can help you pay off your debt faster.

Even a few extra hours each week can make a significant difference.

4. Talk to Your Creditors

Negotiating with your creditors for better terms can provide some relief.

Many institutions are open to working with customers during tough times, especially if you reach out early.

5. Avoid Common Pitfalls

Be wary of store credit and balance transfer offers.

These can seem helpful, but they often lead to more debt if not managed properly.

Stick to a disciplined repayment plan to avoid falling into these traps.

For more Info about Money and Investing you can go to the podcast; The Wealth Playbook: Your Ultimate Guide to Financial Security; and, The Wealth Playbook on Audible.

Disclaimer: Wealth Magnet Pty Ltd (ABN 52 618 868 830) trading as Australian Investment Education is a Corporate Authorised Representative (CAR no. 1255231) of Grange Financial Services Pty Ltd (AFSL No. 488609).

The material provided in this article is for information only and should not be treated as investment advice.

Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.

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