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Have you overindulged over the holiday period? It’s hard to start the year when you have post-holiday debt to deal with.

It’s time to get back into your normal spending routine after spending more on events and parties during the holidays. Take control of your finances now before it snowballs into a debt crisis all year long.

Here are some ways to help you pay down your holiday debt.

Budget

“Create a budget and stick to it” — is one of the fundamental steps that should be taken when cleaning up your finances.

Figure out how much is coming in (income), going out (spending), and surplus each month to put towards paying off your debts.

Write everything out and make a list of all of your payments and bills — from rent to loan. Segregate your fixed expenses (rent or insurance) from your variable expenses (utilities or entertainment). Obviously, there’s room to cut costs from your variable expenses.

To make budgeting easier and accessible, try one of the many budgeting apps available like Goodbudget or Wally.

Change your habits

Now, it’s time to put that budget into action. Making favourable changes in your money habits is the cure to your holiday debt hangover.

You can still enjoy your regular perks like coffee or dinner with friends, but it’s better to try and change some of your habits. Instead of going out for dinner 2x a week, set aside the money you would’ve spent on the second night to pay off your debt.

Some changes to your habits can build up into a large amount of savings.

Debt consolidation

When it comes to paying off your debt, especially multiple debts, you have the option to consolidate them all into one loan.

With debt consolidation loan, you only have one loan to worry about. This can speed up paying off the principal, which makes dealing with the balance faster.

Debt consolidation can improve your credit score and there’s a tax break too.

Automate your debt payoff

When you already know the amount you need to pay each month for your goal, you can set up automatic payments with your bank to transfer money whenever you get paid. It’s best to transfer these funds immediately so you won’t get tempted to spend it.

Furthermore, you won’t have to worry about missing payments, which can hurt your credit score. You can also let the automatically reduced balance motivate you to keep saving.

Bad credit loans in Australia

It’s not impossible to find lenders who will work with you if you have a bad credit.

Cigno is more understanding of your needs and circumstances.

Apply through Cigno today and they will act as your agent to help you with your bad credit loans application.

Take the step by simply completing the online application form.

Apply now!

A credit card can be a valuable tool to pay for things, although this can come at a cost. Dodge costly fees and interest by knowing ways to use your credit card to your advantage.

Stay in control

It’s important to stay in control as you might rack up more debt on your card than you can afford to repay before you know it.

The best way to do this is to keep track of your spending. Check your credit card statement regularly.

Check your credit card statement

Keeping your monthly credit card receipts is the best way to check your statement. This will help you check that you have been charged the right amount for the things you bought and also those you did not buy.

Look for these things when you check your credit card statement:

• unusual or large charges
• charges by companies you do not recognise
• duplicate charges
• changes in direct debit amounts

Contact your credit card provider immediately if there are any transactions you didn’t make. They may be able to reverse the transaction.

Pay your credit card on time

When checking your credit card statement, don’t forget the due date of payment. Make sure to pay on time to avoid late payment fees or extra interest charges.

You can set up a direct debit to pay a fixed amount off the balance owing each payday. Make sure these payments cover at least the minimum monthly payment due on the card.

Maximise your credit card repayments

You’ll pay a lot of interest if you only make the minimum repayments on your card each month. It could take years to pay off your credit card debt.

Switch to a card with a lower interest rate if you’re struggling to pay more than the minimum monthly repayment. Pay off more when you can. Make sure to close the old card to avoid more debt.

Set or reduce your credit limit

The credit limit you set should be an amount you can afford — one that won’t tempt you to spend more than you should.

You can also ask your credit provider to reduce your credit limit. You can call, visit a branch, or do it yourself online.

Don’t use credit when you run low on cash

If you’re running low on cash or an unexpected emergency happens, using credit won’t work in the long run. You might get through the immediate crisis but, over time, end up with even more debt.

Bad credit loans in Australia

It’s not impossible to find lenders who will work with you if you have a bad credit.

Cigno is more understanding of your needs and circumstances.

Apply through Cigno today and they will act as your agent to help you with your bad credit loans application.

Take the step by simply completing the online application form. Apply now!

A bad credit score can be a hurdle for you to get approved for a loan, as it shows on your credit report. Now, improving your credit score makes a double whop — but it’s doable.

Aside from the usual approach, like on-time bill payments, avoiding multiple loan applications, and cancelling unused credit cards, there are other ways to improve your credit score.

Getting approval is not guaranteed, however, here are some tips to better your score and keep it looking good.

Monitoring

Credit bureaus such as Experian, Equifax, and illion (formerly Dun & Bradstreet) can help you monitor by providing your credit report for free.

Your credit report shows all the positive or negative factors that contribute to your score. It gives you all the information you need that allows you to make it better. You can also fix errors on your credit file, such as discrepancies in your personal details (different address on two accounts).

Under soft pull check, specialist lenders can also evaluate your loan application. This way, lenders can have an overall idea of your financial status and it won’t go on your credit file. Otherwise, this could have a negative effect on your score.

Note: Credit score differs depending on the credit bureau.

Keep a consistent home address

It’d be harder for the lender to track you down — which would affect your score negatively, if you change your residence too often.

If you’re planning to make a loan application, you should stay in the same place for a few months.

Consolidation loan

There are financial institutions specialising with consolidation loan. Consolidation could be a better option if you have multiple debts. This way, you only have one loan to worry about.

This helps to boost your credit score as the quicker the principal could be paid off, the quicker you have to deal with the balance. There’s a tax break too!

So, clear those debts and avoid them in the future.

Bad credit loans in Australia

Having bad credit doesn’t have to be a permanent thing. Foreclosures, late payments, and even bankruptcies will fall off your reports after a certain amount of time.

The bottom line is that it’s possible to find lenders who will work with you and your bad credit.

Cigno is more understanding of your needs and circumstances.

Apply through Cigno today and they will act as your agent to help you with your bad credit loans application.

Take the step by simply completing the online application form. Click here to apply!