How to get out of debt - Help to reduce your debt

The quickest way out

Juggling several debts? The quickest way to get out of debt fast is to pay off the debt with the highest interest rate first, such as credit cards or hire purchase. Use our budgeting tool to make a money plan.

Try it now

Make a plan to get out of debt

Here’s how it works.

Make a list of all your debts and the interest rate on each one. (Look up the interest rates in the loan agreements or credit card bill.)
Identify which debt charges the highest interest.
Make bigger repayments to pay off this debt faster. When it’s paid off, start paying more off the debt with the next highest interest rate.

The Sorted loan calculator can help with crunching the numbers.

Debt consolidation

Sometimes a bank or other lender can combine several different high-interest loans into one lower-interest loan. (A single payment can be a lot easier to manage than multiple ones, and you could save a lot of money by paying less interest.) This is called debt consolidation. You just need to be aware that repaying a new loan over a longer period could cost more in interest overall. The trick is to keep paying it down as fast as possible – and avoid racking up any new debts along the way.

Guide to consolidating debt

Trouble repaying?

If it gets hard to keep up with debt, talk to the person or organisation that lent the money as soon as possible. They may be able to work out a new repayment plan. There’s also free advice available through financial capability (budgeting) services - visit the Family Services Directory.

BLOG

Priscilla Dickinson

Did nights out on credit lose me my house?

As a single woman in my 30s, I’d had enough of renting. My home-buyer’s checklist was a small lock up and go, close to the city.

3 Comments | 1 Feb, 2019

BLOG

Peti Morgan

My credit card was a money leak

Credit cards are great right? When you see something you need, you can have it.

7 Comments | 29 Oct, 2018

BLOG

Seeking payday alternatives

“Swipe right for Mr Right” – this whole Tinder swiping thing has become part of culture these days.

1 Comment | 10 Aug, 2018

BLOG

Down to the debt café

Would you go to a “Death Café”? These are pop-up gatherings of people who come together to talk about the ultimate taboo: our mortality.

6 Jul, 2018

BLOG

Redesign your environment

There’s one thing we can say with some surety: we don’t always make the best decisions for our situations, especially with money. It’s part of being human.

14 Jun, 2018

happy family in kitchen mother and child preparing dough bake cookies picture id658018162 2

BLOG

Homemade loan tips

With so many decisions to make these days, the “family first” rule of thumb can make things simpler. Especially money choices.

1 Comment | 5 Jun, 2018

Get that Sorted feeling

Start your safety net

Get your KiwiSaver settings right

Start tackling your debt

Cover your people, money, stuff

Run your retirement numbers

Set your targets, then hit them!

Guides

With Matariki’s rise, a look forward

Victims are not muppets, silly.

Is this $521 yours?

Money tips from a new mum

5 steps to get your $521

Here’s the 4-1-1 on Super and KiwiSaver

Your #10YearChallenge with money

Does your school have it yet?

About

Learning

Resources

Even more...

Get out of debt fast - How to reduce debt

The quickest way out

Make a plan to get out of debt

Debt consolidation

Trouble repaying?

You may also like...

Did nights out on credit lose me my house?

My credit card was a money leak

Seeking payday alternatives

Down to the debt café

Redesign your environment

Homemade loan tips

Get that Sorted feeling

Start your safety net

Get your KiwiSaver settings right

Start tackling your debt

Cover your people, money, stuff

Run your retirement numbers

Set your targets, then hit them!

Guides

With Matariki’s rise, a look forward

Victims are not muppets, silly.

Is this $521 yours?

Money tips from a new mum

5 steps to get your $521

Here’s the 4-1-1 on Super and KiwiSaver

Your #10YearChallenge with money

Does your school have it yet?

About

Learning

Resources

Even more...

Log in to your account

Create your free account

Get out of debt fast - How to reduce debt

The quickest way out

Make a plan to get out of debt

Debt consolidation

Trouble repaying?

You may also like...

Did nights out on credit lose me my house?

My credit card was a money leak

Seeking payday alternatives

Down to the debt café

Redesign your environment

Homemade loan tips

Log in to your
account