Thousands of New Zealanders are currently in debt;

And although some debt may be normal – getting over indebted to the point that the majority – if not all, of your monthly income is used to pay off debts then it’s time to change your game plan.

No matter what anyone tells you – every single debt (other than your mortgage and), in certain cases, your car loan – is labelled as bad debt that needs to be cut-off pronto.

It’s so easy to find loans in NZ, there are literally hundreds of micro lenders and it’s quite easy to get caught up in a web of debt – but the way out is never as simple.

There is no easy way out of debt

The way you got in is never the way you get out so, be prepared to give this endeavour your all, because that’s what it’s going to take.

If you’re drowning in short-term debt, your situation will certainly differ from that of someone whose debts lie primarily in the long-term form. It’s common knowledge that each and every person is as unique as the debt situation they find themselves in however, the fact that the process of getting out of debt is just as unique for each individual certainly isn’t.

There are many different strategies and approaches to dealing with debt and these strategies will not work equally well for everyone.

It all depends on what kind of debt you’re in, how much debt you’re in, your level of income and you individual personality.

If you have a serious problem with debt because you struggle to prioritise expenses and end up overspending on things that you don’t really need; you’re in a different boat to someone who has just lost their job and no longer has the ability to pay for the essentials.

The key to a successful battle against debt it to do something about it right away and, ensure that you follow through with your plans and remain consistent.

Whatever your unique situation, the following 7 tips will certainly go a long way in helping you organise, manage and eventually, rid yourself of bad debt.

START HERE