Write down every debt to see what it really costs
Financial planner says mapping all debts on one page reveals your real monthly burden.
Financial planner Stuart Wilkinson says most Australians can roughly guess their mortgage but have no clear picture of their total debt across mortgages, credit cards, car loans and buy-now-pay-later purchases.
Individually each repayment seems manageable, but together they can crush a household budget. Stuart's first step is writing everything down on one page: the debt amount, interest rate, minimum repayment and any fees.
A piece of paper with this information tells you more about your financial position than almost anything else. Once you know what you owe, look at your cash flow.
Check every dollar in and every dollar out. Many families are shocked to find money they thought should exist at the end of the month just isn't there.
The next step is strategy. If you can make extra repayments, direct them to the debt charging the highest interest and fees, not the smallest balance.
Why it mattersUnderstanding your true debt burden lets you build a real strategy rather than guessing, and stops small repayments from hiding a huge monthly cost.
AustraliaAustralian families struggling with rising mortgage and living costs can use this framework to take control of their finances and avoid the trap of consolidating debts without actually solving the problem.
✓ Claims checked against the source. checked 2 h ago
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