If you’re drowning in debt, the first thing to do is stop telling yourself you’re drowning. There is a way out, no matter how deep you’re in.

Here are our suggestions to get you on the way to a better life.

  • Make a budget
  • Ask: are you broke or overspent?
  • Get a plan
  • Don’t get into any more debt
  • Cut expenses, somehow
  • Make more money
  • Ask creditors to lower your interest rate
  • Pay on time – avoid fees
  • Get help
  • Baby steps


Create a budget


You can’t get far in the money game without being smart (and organised) about it. You might think that you don’t have enough money to even need a budget but think again. Every penny counts and, more than that – it’s how you choose to divide it all up that matters.


Knowing exactly how much you have, and where it goes (and needs to) is the very first step.


Check out free (and excellent) online budgeting tools, such as this one from the Australian Government’s Money Smart website.


Broke or overspent?


Are you really broke, or are you just spending too much? It may feel like you’ve never got enough money, but often that’s because there’s a money leak. Once you’ve had a good look at your expenses, you may well be able to see areas for improvement.


First, analyse. Next, prioritise.


Get a plan


Now that you can see your money situation in all of its raw glory, you can make a plan that aligns with your plans and (dare we say) dreams.


Don’t rack up any more debt.


Okay, this is self-explanatory, and perhaps a little obvious, but it’s so easy to feel that when you’re already in debt, you might as well go really into debt. You know, make it count??!


Don’t fall into this trap.


The little steps that you take add up to your financial freedom in the long run.


How can I get out of debt with no money?


Cut expenses


Get clear on your priorities, then, once it’s all divvied up into your various pots,    you can choose what you do with what’s left.


  1. Spend – essentials like groceries, bills, rates, etc.


  1. Save – try to save at least 20% of your income.


  1. Splash – being too tightly controlled with your cash can often lead to spending binges. Give yourself leeway if you can, with a little pocket money to spend carelessly every week. Even if you can’t achieve this to start with, work towards being in a place where the odd little treat for yourself doesn’t come from the same account as your mortgage does.


Make more money


Be entrepreneurial, get creative and find ways to earn a bit of extra cash.


Ask creditors to lower your interest rate


Go on, be brave. You never know what they’ll say. And often, being upfront and clear will get you unexpected results.


Pay on time


Once you’ve planned your budget properly, this should be an easy step. Set up automatic payments from a specific account to make sure this happens even if you forget.


Get help


Experts in this field are here to help you and will often be able to point out things that you might not have seen for yourself. If it’s all feeling too hard, and you need a bit of help make sure to reach out.


Baby steps


Now you have some things to get going with, there’s no need to wait a minute longer. Start putting the wheels in motion – little by little – and jump on the path to your debt-free life.


When it’s all too much


If your finances are diabolical and you’re considering bankruptcy? Then feel free to contact us we have assisted thousands of people go through the bankruptcy process from start to finish.  At Bankruptcy Experts we are here for you when you need us the most.  For more information call us on 1300 795 575.