We are all prone to overspend, and as a result find ourselves with a Christmas hangover of the financial variety – unfortunately Debt Cutter can’t help you with the other kind!

When we find ourselves in debt and our subsequent debt depression, I am sure we are going to asking ourselves, how to get out of debt?!?

This isn’t a particularly nice topic to be thinking about so close to Christmas, but alas it is a reality we must face. I know with the amount of money I have been spending on Christmas presents, the sudden rush of “let’s get breakfast/lunch/dinner”, I am really beginning to feel the Christmas pinch.

Before I go on, if you haven’t had a chance to read our other blogs on saving money this Christmas you can do so at the below links. It’s not too late to make your Christmas financially sensible!

Layby to avoid financial hardship this Christmas

Christmas spending – are Australian’s set for trouble?

Set Up the Ultimate Christmas Budget

Beating buyers remorse this Christmas

How to save on Christmas without being cheap

If you’ve already spent the money, and are dreading opening your credit card statement next month, don’t fear! We have developed a six step plan for you to get out of debt in the New Year.

Step 1: Make the call
The first thing you need to do to get out of debt, is to get serious and make the call.  Consciously think, I am going to change this, I will be debt free! A lot of people would use a New Year’s resolution as their excuse to make the call and change their thinking around financial habits.

Step 2: Talk about it

Although Australian’s are a very silent bunch when it comes to talking about finances, just talking to a friend, family, or even a professional will allow you to talk through how you got into your situation, and more importantly how you can get out of it.

Step 3: Set a goal

The key to getting out of debt is to set yourself a target, or goal. When you can motivate yourself to achieve something, you will subconsciously become more motivated to reach that goal. Think – within 3 months I will ensure I have paid off my credit card bill!

Step 4: Develop a plan

The key for getting out of the financial mess you created during the holiday season is to create a plan, or in this case a budget. Sit down and work out how much debt you have accrued, and what your normal expenses are, and use this as a template to figure out how much extra money you can save to put towards your debt. Just paying a little bit extra a week or a month will significantly cut down the time it takes to pay off the debt, as well as the amount of interest you will be paying.

Step 5: Put the plan into action and stick to it

This seems like the easiest step, but it is also the hardest step. Put your plan into action, and stick to it. It may take a little while to see any results, but by enacting and sticking to your plan, we promise you will begin to see the results of all your hard work. Don’t get disheartened, it will be worth the sacrifice.

Whilst a lot of these steps may seem like common sense, when you are stuck wondering how to get out of debt, sometimes all you need is someone to spell it out for you. Just because you have overspent on Christmas this year, doesn’t mean you have to pay for it all of 2016.


Elise Bentley
Brand & Communications Manager

Elise is passionate about finance, and is on a mission to explore and share different tactics for tackling the everyday financial challenges in realistic and achievable ways. With a background in communications, digital marketing, and public relations, Elise uses her skills to generate new ideas and content to help make finance fun.