Any good strategies for getting out of debt?

Spend less than you earn, use the difference to repay your debt. Sell the stuff you bought with the debt in the first place.
That should about do it.
Cheers, F. [cowboy2]

It really depends. In addition to Selling stuff, I would suggest:
1. Look and consolidating your debt
2. Get rid of your credit cards and pay cash. If you dont have the cash then you wont be able to buy
3. Spend 1-2 months writing everything down you spend money on. There will be at least 50 pw you could find. eg Do you smoke?, Do you drink?, Do you eat out? How often?, Do you drive when you could train it? Do you conserve hot water? etc, etc.

Here is a really good one someone told me that really works. Do not shop again for food until your cupboard is empty. Yep that may mean mince meat and a can of baked beans for dinner. It does 2 things: 1. Makes you better plan what to buy 2. Stops you throwing out old stock cause it goes off.

Good luck, there is no silver bullet, but you must be disciplined and determined.

get a budget happening. Excell is a good tool to use. I get payed monthly, every month has a column of income and expenses. I leave some money in the budget for contingencies (eg partner wants to go out for dinner, unexpected bills etc). In general I know the expenses from month to month eg internet bill, phone bills, minimum loan repayments, groceries, petrol….

There are two schools of thought…

1 pay off highest interest debt first with the extra money in your budget, then the next hightest interest debt when that first one is paid off and so on. As each debt is payed off use the money you were paying off the first debt onto the next debt(this will guarantee you pay the least amount of interest for the money you put in)

2 pay off the smallest debts first, then use that money to pay off the next smallest debt… this way you see the changes quicker (but dont save quite as much money in interest)

If you have any questions about this, or would like an example spread sheet (complete with how much I spend on woodstock bourbon and cola) just pm me

ask for a pay rise… first have in your mind why you deserve it .Dont ask if you dont.

get rid of all non essential expenses ,pay tv ,porn mags (may be essential for some) etc

make a series of goals with set timelines and stick to it , it sometimes pays to team up with a friend that may be in a similar predicament. Like going to gym if you pair up, your motivation can be not to let a friend down.

Hi LS,

I assume we are talking about the motorcycle debt and not others too – is this correct?

I would recommend you do read Simon’s long screed – it doesn’t fluff around the edges and gets to the point.

Secondly I would also say you need to tackle the job head on – set yourself some little targets (paid $500 off by end of Nov 2006, paid another $500 off by March 2007 and so on)

You could even enlist the support of a like minded friend to report to on a regular basis.

You can even arrange through payroll or direct debit for your repayments to be increased so in effect they become a hidden tax – you don’t see it, you don’t miss it, but it works to your advantage in the background.

These targets need to be achievable so that you do not become disillusioned at the lack of achievement. At the same time if you are really serious (are you?) you can afford a LITTLE celebratory splurge at the achievement of each target.

Really the heart of the issue is how badly do you to get rid of this debt? Are you content to let things drift along as they are?

The reward at the end of the line is a clear debt sheet (the record remains) and the capacity to move forward for your future. To me they are two bloody big carrots.

Derek
[email protected]
The Investors Club http://www.monopoly.tic.com.au
0409 882 958
Skype – derekjones2113

Get a personal loan for the Hire Purchase loan or even both.

You will pay less than half the 24% interest rate.

Keep paying it back at the current rate.

What is your goal? If it is to buy a property then let me suggest something unusual.

Pay the minimum off the personal loan and start saving a deposit.

You will not be able to get a decent home loan with zero debt and zero deposit. Most decent home loans want to see that you have established a savings pattern. Start this now in an INGDirect account or the like.

Depending on the figures, you may well be able to afford a rental property and the current debt repayments together.

Whether or not this is the right move in this current climate is anyone’s guess

[biggrin]

Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Depends on how bad it all is – why don’t you ring a few banks and see if they will take it on. I don’t work in the personal loan area so cannot be of much help.

Cheers,

Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

First of all I suggest that you find out what information Baycorp Advanatge have on your credit file. They keep the records that lenders access when they check you credit rating. You are able to access to these records as well. Go here to find out more
http://www.mycreditfile.com.au/home/home_default.aspx
Accessing this information will allow you to clearly identify the problems that you need to fix.

If you can be disciplined with credit cards and fit their criteria, you may be able to transfer your debt to a no interest rate card for 6 months to give you time to save up to pay it off (or at least a large chunk of it). http://www.citibank.com.au/cardsoffer/offers/goldzero_A.htm Here’s one that has 0% in balance transfers AND PURCHASES for 6 months. If you can’t get that one there are quite a few others.

The other thing that I think is worthwhile and is something that I have used in the past , when money was tight, is this website- http://www.simplesaving.com.au

I hope this helps.

Todd Burns
http://www.freepropertyhelp.com.au

Always remember to pay yourself first Income in –

Save 10% of that Net Total after Tax

Then pay for essentials food,etc

Then pay the Bills

Pay down the high % debts asap and then don't buy rubbish you don't need hire movies during the week when they are cheap, take lunch to work, don't drink or smoke for 6 months, ride your bike more often to work if you can.  Go to the park and look at the beach saves money doing nothing.

Save, Save and Save and pay down those debts!  Don't try to impress anyone including family with TV's, Cars etc unless you can honestly pay cash for them and afford it.

Set up a month budget and go through it with a fine tooth comb and analyse every cent you spend even $2 for parking or $1 for postage stamps.

That's why I do anyway heheehehe and I am saving up for my 3 properties hopefully within the next 18months have enough for my new PPOR.