It is easy to get into debt. But it can be much harder to get out.
Here are some tips for how to start getting on top of your debts.
Look at your debts, including credit card, car loan and personal loans. Then work out the interest rate for each of your debts. Focus on paying off the debt with the highest interest rate first. Try to make bigger payments if you can.
Sometimes a bank or lender can combine several higher-interest loans into one lower-interest loan. A single payment is also easier to manage. However in some cases it might be that repaying a new loan over a longer period will cost you more in interest overall. Sorted.org.nz says the idea is to pay it down as fast as possible.
If you are struggling talk to your lender about a new repayment plan.
There is also free and confidential advice available from the NZ Federation of Family Budgeting Services. Call them on 0508 BUDGET or 0508 283 438.
Their website is at http://www.familybudgeting.org.nz/