manage debt

8 Tips That Will Help You Save Thousands of Dollars

Being in debt isn’t as bad as people painted it to be. Having debt can be useful.

Your credit history is determined by how effectively you manage your debt, which is the most important aspect that allows you to buy big purchases like cars or houses. When it comes to debt, a basic rule to remember is that a good debt increases your net worth or has future value.

Good debt can help you in achieving your goals, whereas bad debt is costly and can derail them.

Simply said, good debt is a debt that provides value to your life that you want to take on.

Bad debt takes away from your net worth and doesn’t add value to your life.


1. Compute How Much Money You Owe 

Making a list of how much you owe and to which providers, as well as how much you spend in fees and interest to each, is an excellent place to start if you’re attempting to figure out how to manage your debts.

While this may come as a rude awakening, it will provide you with a clear picture of where you are and how different interest rates and fees may affect the amount you owe.

2. Compare How Much Money You Owe, Make and Spend 

Apart from figuring out how much money you owe, it’s also a good idea to keep track of how much money you have, how much cash you’ll need for the necessities, and where the rest of your money is going. This will allow you to see where there is an opportunity for improvement and where you may add a little extra to your repayments.

3. Check If You May Combine Your Debts into One

Multiple loans can result in several fees and interest charges, which is why consolidating your debts into a single loan with a lesser interest rate and costs might save you money.

If you consolidate your debts into one, you may find it easier to manage because you’ll only have to make one payment rather than multiple.

However, before you make any judgments, check to see if your lender is ASIC-licensed and if you’ll actually be saving money once interest rates, fees, and any other costs are included in.

4. Pay Your Debts on Time

Time management and debt management typically go hand in hand, because paying bills on time may help you avoid things like late penalties and interest costs. Consider setting up notifications to remind you when your payments are due, or see if paying via direct debit may be more convenient.

Late payments might result in black marks on your credit report, which can affect your ability to borrow money since it shows lenders if you’ve been paying your expenses on time.

5. Rather of Paying the Minimum Amount, Try to Pay the Full Amount

When it comes to making payments, you typically have two choices: pay the outstanding full amount or pay the minimum amount due. While it may be tempting to pay only the least amount due, keep in mind that interest may be applied on the remaining balance, resulting in you owing more money.

6. Assess If You Can Afford to Make More Payments

Another option is to make additional payments in addition to your regular installments. This might help you pay off your debt more quickly, and you’ll usually pay less interest, which could save you thousands of dollars depending on how much you owe.

However, before making further payments, verify the terms of your loan, as some lenders may charge you a fee if you pay off your debt early.

7. Make A Contingency Plan

When it comes to your finances, expecting the unexpected always pays off. Your loan provider may raise interest rates or modify repayment conditions, or you may face changes in work or health that prohibit you from working or settling your debt.

You might potentially prevent skipping payments or collecting extra debt if you have a contingency plan in place, such as an emergency savings fund.

8. Know Who to Reach Out

OzBroker delivers exceptional service we’d want to experience ourselves. We place your financial needs above any of the lenders, ourselves or our aggregator. Our duty at OzBroker is to ensure you obtain a loan which is appropriate (in terms of loan amount and structure), affordable, suitable for your needs and requirements in a responsible manner which provides you with a good outcome.

You may reach us out at



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