I understand the complexities of managing debt, while striving for financial stability. In a world where financial decisions can feel overwhelming, it’s crucial for us to approach debt with responsibility and awareness where we can. So, here are some practical tips for managing debt and making it a much less scary part of life.

Understand your financial situation: Before making any decisions about borrowing money, consider taking a close look at your finances. This may involve calculating your income, expenses, and any existing debts. Understanding your financial situation will help you make informed choices about borrowing and spending.

Budget wisely: Creating a budget is often essential for managing debt responsibly. It may involve allocating funds for essential expenses like food, housing, and utilities, while also setting aside money for savings and debt repayment. Part of budgeting is being realistic about your spending habits and making adjustments as needed to stay within your budget.

Avoid high-interest debt: High-interest debt, such as payday loans or credit card debt, can quickly spiral out of control and lead to financial hardship. Whenever possible, avoid borrowing money at high interest rates. Instead, explore alternative options like community support programs.

Seek financial education: Knowledge is power when it comes to managing debt. Take advantage of financial education resources available in your community or online. Learn about budgeting, saving, investing, and debt management strategies that align with your financial goals and cultural values.

Build credit responsibly: Establishing a positive credit history can be important for future financial opportunities, such as buying a car or home. However, it’s essential to build credit responsibly by making timely payments and keeping debt levels manageable.

Communicate with creditors: If you’re struggling to repay your debts, don’t ignore the problem. Instead, consider reaching out to your creditors to discuss your situation and explore potential solutions. I have been bad at this in the past, and I can definitely admit it does a lot more harm than good to put off these tough discussions. I find being proactive and honest about your financial challenges is the easier way to go in the long run.

Explore support services: As Indigenous Australians, we have access to unique support services and programs designed to assist with financial literacy and debt management. Our cultural values play a significant role in shaping our attitudes toward money and debt. Reach out to local Indigenous organisations or community centres to inquire about resources available in your area. These programs may offer financial counselling, debt consolidation services, or emergency assistance to help you navigate difficult financial situations.

Managing debt responsibly is a critical aspect of achieving financial stability and empowerment as young Mob. By understanding our financial situation, budgeting wisely, avoiding high-interest debt, seeking education and support, and aligning our financial decisions with our cultural values, we can navigate the complexities of debt with confidence and integrity.

Like every article on this website, this is not personal advice. If you’re struggling with debt, contact the National Debt Helpline on 1800 007 007.