Pay the debts off before you save

Don’t let debt keep you from ticking off your Bucket List. Rather take a moment to come up with a repayment plan that’s practical and achievable.  Those with both debts and savings are overspending. Pay the debts off before you save. There are some tried-and-true methods for paying down debt.

Follow these tips to pay back loans faster and smarter:

  • Make a spread sheet and categorise your debt from highest to lowest interest rates.

  • Make a budget that includes an amount for paying back loans.

  • Pay of smaller debts first. The sense of accomplishment will motivate you to keep going.

  • Look what expenses you can cut and spend that money on paying your debt.

  • Make larger or more regular loan repayments when you can.

  • Put any money you get back from the tax man into paying off loans.

  • Make your repayments on time - late payments can result in penalties and lowering your credit score.

  • Hold back on using credit cards if you can - they will only add to your debt.

  • If necessary bring in extra income to put towards paying back your debt.

  • Don’t be afraid to ask for help – either from credit counsellors or from creditors who may be able to adjust your repayment terms.

  • Need to earn a little more cash to relieve the pressure? Consider some of these options, even if just for a short amount of time until you feel more comfortable in your financial situation.


Debts usually cost more than savings earn. Cancel them out and you're better off.

Sadly, many people have much more debt than savings. So even if you use all your cash to pay them off, you'll still have debts left. Therefore, it's important you prioritise using your savings to get rid of the most expensive debts.

Pay off the most expensive debts first

  • Once your debts are as cheap as they can be, list where they are and the amount of debt that you have. Then use your savings (or spare cash) to pay off the most costly debts first. All this done together should massively reduce your costs.

Before applying for a loan consider how much debt you can afford to take on and how you will pay it back.