If you have debts to repay, it can be hard to know where to begin. You can start by making a plan. Following these 4 steps may make a big difference.
Step 1 - Identify and sort your debts
When working out your debts, include any:
- credit card and loan repayments
- unpaid bills
- fines
- other money you owe.
Then sort your debts in order of importance by working out the following:
- who you owe money to
- how much you owe
- due dates for repayment
- the minimum monthly repayment, if any
- the account keeping costs
- the interest rates you’re paying.
Step 2 - Work out your costs
Knowing what you spend your money on may help you work out where you can spend less. This can help while you’re paying off your debts.
When working out your costs, include if they’re weekly, monthly or yearly. Also include any recurring debits you may have set up. Reviewing or making your budget is the easiest way to do this. Find out how to review or make your budget.
Step 3 - Think about your needs
Once you know your debts and costs, think about what you need and which extras you can do without. You can also look at ways to save money which could include:
- shopping around for deals on electricity, insurance and phone plans
- using cash or a debit card instead of your credit card when shopping.
Step 4 - Take action and ask for help
Make sure you work out a plan to repay your debts. Ask for help as soon as you think you’ll have problems meeting repayments. The sooner you ask for help the easier it’ll be to take control of your debt.
If you owe us money, there are options to help you repay a Centrelink debt.
You can also avoid getting a Centrelink debt by keeping us up to date. You can find more information on when and how to notify Centrelink when you have a change of circumstances if you get a Centrelink payment.
Free help and advice
There’s free support or advice you can get to help with your finances. Find out more about getting financial help and information and where to find a free financial counsellor near you.