Aussie families are doing it tough, as the average household debt has increased nearly twice as fast as the value of household assets over the last 25 years, according to the Australian Bureau of Statistics.
But thankfully, through some savvy money saving tactics, you could say goodbye to debt for good and hello to a healthy bank balance in no time.
Here’s how to get started:
- Do your sums
Kidspot says you should take the time to assess your current financial situation and your capacity to pay your creditors by asking yourself “what income do I have?” and “what are my basic living costs?”.
You can use an online budget calculator like MoneySmart’s budget planner to get a clear idea of what money is going and work out why your budget has been suffering of late.
- Consolidate your debt
If you have everything from store cards, credit cards and personal loan debt accruing high interest rates and fees, it could be time to roll them all over into one debt consolidation loan.
A debt consolidation loan with Rapid Loans can put all of your payoffs in one simple place, with competitive rates and flexible terms and conditions. It works by adding up all of your varied debts and applying for an online loan, specialised in debt consolidation. This new loan can then be used to pay off all the money that you currently owe – meaning you’ll only have one ongoing repayment to worry about.
- Sell assets
While it may be hard to think about selling your family home or new car, if the pressure is really on, it may be a smart move. MoneySmart explains that it is better to sell your home on your own terms than for the credit provider to sell it.
Apart from large assets, another way to put more money in your pocket is by clearing out your drawers and cupboards, by selling your used items online or holding a garage sale. You know the saying “one man’s trash is another man’s treasure”.
- Apply for government assistance
You should also take the time to look into the different government assistance options available (e.g carers, parents, guardian assistance) on the Australian Government’s Centrelink website, or if you’re having a baby soon find out if you can receive parental leave.
Just a few hundred dollars extra could make a huge difference to your family budget!
- Use less energy
Another major household money drain is electricity consumption, which happens when the kids leave everything from the lights on to the TV blaring. If you have young kids, consider rewarding them whenever they turn off their tech gadgets with a gold star or house points.
Another way of using less energy is by having electronic free nights, which is a great way to get back to basics and play board games and trivia as a family.
- Car pool
Is your vehicle a massive petrol guzzler? Speak to other parents in your area and organise a car pool – this will ultimately save you money at the pump, as you’ll use less petrol. Plus it’s a great way to get to know the other mums and dads in your area!
- Change your household habits
Last but definitely not least, you could find some small things are eating away at your family’s budget. For instance, ordering takeout 3 times a week at $50 a pop could set you back $7,800 over a year. So turn that weekly habit into a once a month treat and save you and your family big time. Plus home cooked meals are a much healthier option than the bought alternative – and you will plump up your bank balance not your waistline.
Ready to ditch the debt? Check out our personal loan calculator to see just how easy a debt consolidation loan with Rapid Loans can be.