How to Budget to Clear a Debt

Start with the full picture

A budget is just your money on one page — what comes in, and what goes out. Seeing it clearly is often a relief in itself, because the unknown is usually scarier than the numbers. Start by listing your income and every regular expense, even the small ones.

• All income — wages, Centrelink payments, anything regular
• Essentials — rent or mortgage, utilities, food, transport, medical
• Other commitments — other debts, subscriptions, insurance

Build your budget step by step

1. Add up your total income for a typical week or fortnight.
2. List and total your essential expenses for the same period.
3. Subtract essentials from income to see what is left.
4. Look for small, comfortable savings — not drastic cuts you cannot keep up.
5. Decide on a realistic amount to put toward your debt each period.
6. Set up that payment with us, then review your budget monthly.

Even a modest, steady payment adds up over time and shows real progress.

Get free help and arrange your plan

If the numbers do not add up no matter how you arrange them, that is a sign to ask for help — and there is plenty available. A free financial counsellor on 1800 007 007 can build a budget with you. When you are ready to set up a payment that fits, contact us through the contact form or read our guide on setting a realistic payment plan.