Expert Opinions: Ways out of Debt

Expert Opinions: Ways out of Debt


Being in debt brings about a lot of problems, getting out of debt brings about numerous challenges. Because CreditLoansAustralia provides advice on all types of credit and loans, so should ways to get out of debt be featured here. Therefore, I’ve asked numerous financial bloggers and experts what their take is on ways of getting out of debt. The top 10 reactions are put together in this post, Expert Opinions: Ways out of Debt. The responses I’ve received are good and practical tips you can use to get out of debt, asap. Enjoy reading!

#1. Kylie Ofiu over at

(2015 Finalist Young Australian Of The Year, ACT) gave the following 3 tips:


1. Round down your bank account

Whenever you check your bank account online, round it down. For example if you have $103.74 in there, round it down to a flat $100 by transferring the $3.74 straight to your debt.

2. Make more money

Look at ways you can make more money. I have a whole book with ideas, over 100 of which can be done from home, called 365 Ways To Make Money. Think about what you can do such as sell off your items, dog walking instead of going to the gym (this will both save and make you money), online reviews, work part time, deliveries, cleaning, childcare, gardening, there are thousands of ways to make money, find what you can do and put all extra money on the debt. Do not be tempted to spend it.

3. Review your habits

Look at your spending closely, see where you can cut back but also review hy you are spending when you are. Is it pressure to keep up with others? Is it emotional spending? Do you feel you deserve it and should ‘treat’ yourself? Knowing why you spend how you do will enable you to review all of your habits and break the ones which are keeping you in debt. Making more money is great, but if you keep the same habits, you will spend more when you earn more and will still be in the same financial situation you are currently in.

#2. Jon Dulin over at Money Smart Guides:


My top 3 ways to pay off debt would be to clean out your house, work a side hustle and to reallocate your budget.

1. For cleaning out your house, maybe there are some things you charged on your credit card that you never used and you can return. If not, there are probably things laying around your house you never use. Gather them up and hold a yard sale or sell them online. Take that cash to pay down debt.

2. When it comes to a side hustle, find something you enjoy doing and find a way to make some income doing it. Maybe you can babysit or dog walk or mow lawns. Anything that brings in some money helps. Just make sure you use that income to pay down debt.

3. Finally, you can reallocate your budget. Find some things you can go without or even less of. Cut out dining out for a month or two and use that money for debt. Or, still go out, but only use half that money and use that to pay off debt. Just don’t deprive yourself too much or you will resent your debt and possibly act out by spending money you don’t have.

#3. Andrew Schrage, co-owner of Money Crashers Personal Finance


1. One of the best ways to reduce your debt is to get on a personal budget. Use a website like BudgetPulse (which is free to use), make one using Microsoft Excel, or write one out with pen and paper.

2. Then reduce your monthly bills as much as possible. Using coupons to save on groceries and dropping your home telephone line if you don’t need it are two good starter ideas. Once you have a surplus, use that to reduce your debts. Then, live your financial life by one easy rule – if you can’t afford to pay for something by the time the credit card bill comes in, then you just can’t afford it.

3. Another way to reduce your debts is to pay for everything in cash. It’s a rather extreme measure, but it is effective because once you run out of money for the month, then you can’t spend any more of it.

#.4 Ryan Guina from CashMoneyLife:


Eliminating debt should be high on most people’s financial priorities list. Here are three quick tips to get out of debt:

1. Assess the situation. Make a cash flow statement, which lists all your income, and all your expenses on one sheet of paper. It will be helpful to list payment amounts for your loans, along with due date and interest rates. This will show you exactly how much, and when, your payments are due.

2. Get current. Don’t pay more than you have to by letting late fees and interest charges pile up. That’s just digging a deeper hole! Get current so all of your money goes toward paying your loans, not the added fees.

3. Accelerate your payments. Use the debt snowballto get out of debt more quickly. This focuses on paying off your smallest debt first, so you can direct the payments you were making on that loan to the next loan on your list. Then repeat the process. This will increase your payments over time, greatly reducing how long it takes to eliminate your debt.

#5. Below are the tips from SB @ one Cent at a Time


1. Reduce debt by paying off larger portion every month – You can start paying larger portion (more than minimum due) by: a) saving more money and b) increasing your income. You can increase your income by working over time, or taking up a side hustle or trying to get a raise at your work. You can also try switching job for a better pay.

2. Reduce debt by reducing interest  – This can be done by self-debt consolidation. Whether using borrowed money from friends/family, or using 0% balance transfer card or taking overpersonal loans at lower interest.

3. Reduce debt by getting motivated  –  Paying debt off is often a mind game. If you start imagining a life without debt, the freedom it can bring to you and your family. You start getting motivated. debt snowball is one such tool to keep you focused while enjoying the small mile stones. you start paying off the smallest debt first. This gives you hope and joy. You get motivated to tackle the next bigger debt, and so on.

#6. Here’s the top three from


1. Learn to cook at home. Eating out is unbelievably expensive. If you don’t believe this bring home each restaurant receipt and keep them in a special place. At the end of the month add them up to see just how much you spend. If you have to buy nicer knives and cookware do so. It costs a bit up front, but over the long haul you will spend a lot less money on meals.

2. Shop without a cart. If you can’t carry it out of the store you can’t buy it. This is an easy trick that prevents throwing additional stuff into the cart that you really don’t need. I even do this in the grocery store. If I can’t fit it in one of those small baskets then I can’t take it home.

3. Read about minimalism. There are a lot of books that focus on an enjoyable life without a lot of stuff. Change your mindset about needing things and you’ll stop spending. Then all your income can whittle away at the debt.

#7. Kirsten of


1. Eat at home. You don’t have to eat every meal at home, and you don’t have to make something fancy. Keep it simple and manageable and just aim for eating at home most of the time.

2. Plan a menu before you shop. A menu plan helps you buy only what you need (that helps prevent food waste) and ensures you have everything you need to make meals (that helps prevent takeout runs.)

3. Buy second-hand instead of new. Freecycle, thrift stores, or ebay, or craigslist are great second-hand options. You’ll save money, reduce demand for newly manufactured items, and give new life to someone’s unused item.

#8. And there’s The Debt Myth, who argues the following:


If you want to reduce your debt, it’s important to stop borrowing (and then make at least minimum payments on all of your existing debt.)  While you’re doing that, focus heavily on a single debt until it’s gone. Then move to the next debt in the list. The Pay Off Debt app can help keep you motivated while doing that. Finally, increasing your income and reducing your expenses will help you make progress.

#9. David Ning, MoneyNing:


There are many different ways to reduce debt, but consolidating the payments into as few as possible is one of the best ways to manage and ultimately reduce the burden. For example, many people can probably refinance their mortgage to get a lower rate, and also take a bit of money from their home equity to pay off some of the higher interest rate loans in the process. With fewer payments and a lower interest rate charged on the debt, debt freedom becomes much more of a reality.

#10. Maggie’s three ways to reduce debt (SquarePennies):


1. Track your spending to see where you can cut back. Write down everything you spend and categorize it at the end of the month. From that set a budget with lower limits for each category where possible. Cut the most in categories that are non-essential spending. Make a monthly budget that includes money set aside for annual and semi-annual bills like taxes and insurance premiums.

2. Set aside money for an emergency fund before paying down your debt beyond the minimum payments. After you have 3-4 months salary in your emergency fund, increase your loan payments as much as possible. Keep putting some money in your emergency fund until it reaches 4-6 months salary, but do this at a slower pace than before. That’s because you are paying down more debt at this point. As soon as you have the 4-6 months salary in your emergency fund, put all your extra cash towards your debt.

3. Continue cutting your expenses by cooking most of your meals at home (the more you do, the more you save!) and bringing your lunch to work. Learn ways to cut your utility bills and insurance bills. Learn tips and tricks for more frugal living at blogs like mine! Put all those savings into your loan payments and work towards the day you will be debt-free! After the debt is gone, keep tracking your spending to live without debt! You can do it!

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