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7. Increase Income & Use Bonuses to Repay Debt

7 Increase Income Use Bonuses to Repay Debt
Increase your Income to Repay Debt – 7 Tips to Get Rid of Debt in NZ

This is probably the most underestimated and least-desired approach to getting out of debt but, it’s also the most effective.

Most people easily realise that they need to cut down on their expenses to make sure their debts can be paid off but why not consider increasing your income?

Whether you can’t make your minimum repayments or you just want to get rid of the debts you have for the sake of financial freedom and peace of mind, increasing your income will certainly help achieve your goals.

Why not take a bad situation and use it to move yourself forward?

You could go after that promotion you’ve been eyeing for years, ask for a well-deserved raise that you’ve been putting off, start a part-time business or get a part time job.

If you have no intention to commit yourself to an increased workload in the long-term you could consider having a garage sale or taking one or two temporary jobs just to get you that extra income you need to regain the balance to your finances.

The internet also makes it possible for us to do work that generates an income without ever leaving the comfort of our homes. Whatever endeavour you choose to purse, make sure you put the money to use in the most effective way

This mean that you need to be mindful of becoming overeager, and causing your debt-busting to go straight back to where it once was.

When you get your quarterly, annual or commission bonuses you should certainly use the money to pay off your debts. This may seem like a complete waste of your work and efforts but, it you’ll be grateful you did late on.

It’s also worth mentioning that paying off debts will always take priority over saving since you’ll never be able to earn as much interest on your savings as you’ll be charged for the same amount of debt.