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Take control of your debt and plan for a stress-free future.
When practicing mindful debt, keep these aspects in mind:
Managing your debt properly helps maintain a good credit report. Discover your borrowing options and learn more about credit reports here.
Always read and understand the terms of your loan, including interest rates, fees, and when you are expected to pay it back. Doing this means you’re fully aware of the cost of borrowing.
Managing debt can help reduce financial stress and anxiety, which can lead to better mental and emotional wellbeing.
Proper debt management helps you to not miss payments. Missed repayments can lead to charges, higher interest rates, and damage to your credit report.
Reducing and eventually ending debt gives you more financial freedom. This means you’ll be able to put funds towards savings, investments, and other financial goals.
Managing debt means that you have the financial flexibility to handle unexpected expenses or emergencies.
List debts by amount, interest rate, and minimum payment. Choose which debt to pay back first by either interest rates or balances.
Use the snowball method, where you pay off your smallest debt first, or avalanche method, where you pay off the debt with the highest interest rate first.
Combine debts into one loan with a lower interest rate to save money on interest and manage your debt easier.
Increase earnings through side jobs or selling items and use the extra cash for to pay off your debt quicker.
Do not take on new debt until you are managing your existing debt.
Cut spending on things you do not need and direct the savings towards paying off your debt.
Set automatic payments to avoid late fees and protect your credit report.
Apply bonuses or tax refunds to debt. Treat them as money you never had to help reduce the overall balance.
Talk to your lender for guidance or a debt management plan. If your debt is with Bank of Ireland check out our Money worries hub for more guidance.
Find yourself under financial strain? We’re here to listen, support, and help find a way to relieve the pressure.
Learn more about money worries