Budget Bootcamp.
Week 2.


Activity 3: List and rank your debts.


We’re going to look at them all!

The good (yep some debts can be good, particularly if they improve your net worth), the bad and the downright ugly.

  • First up, write down all your debts, including home loans or personal loans, credit cards/store cards. Heck, throw in your HECS (Student Loan) if you’ve got one, just so you’ve got the full picture.
  • Now list them in order of importance. Starting with the baddies. For you, that might mean the one with the highest interest rate. Or perhaps it’s the biggest balance. Or it’s with a lender that you don't like much.
  • Then move down to car, home and student loans and the like (the good guys, relatively speaking).
  • Include the total amount for each debt, where the debt is held and the interest rate.

The object here, is to get rid of the baddies and take control of the goodies.

That might mean looking at consolidating some of your smaller debts, or transferring the balance of your credit card to a low rate card, reducing the interest you’re paying across the board.

You’ll aim to pay off the balance of your credit card every month, not just the minimum repayment. This stops the debt from piling up.

Got a personal loan or a mortgage?

Think about making repayments fortnightly instead of monthly to reduce interest repayments over the course of the loan.

Or alternatively, reduce your mortgage interest repayments by utilising an offset account.

If you have a HECS/HELP debt, there’s really no need to pay it out early as there is no interest on it – visit Study Assist for more information.

Regardless of what debts you have, be sure to do your research and find the best deal for you.

Need help? There might be a better way to structure your debt so you’re paying less interest or fees, meaning you’ll be debt free sooner!


Your week 2 snapshot.

Activity 3.

List and rank your debts.

Activity 4.

Bonus activity.

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This information has been provided without taking into account your objectives, financial situation or needs. Before acting on this information, you should consider its appropriateness, having regard to your objectives, financial situation and needs.

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