Ditch the 2023 debt with these 7 top tips

guy is happy because debt-free

Debt can be scary, there’s no doubt about that. But, with the right toolkit (and a little bit of self-discipline) 2024 could be the year you eliminate your personal debt by tightening the money purse now.

Whether you’ve been putting your shopping on your credit card, are struggling to pay off your lingering car loan or just want to stop making endless personal loan repayments, we can help.

Here are 7 of our top debt-ditching tricks which could see you become debt-free in 2024: 

1. Prioritise your repayments 

The golden rule when paying off personal debts like a personal loan, car loan or credit card is to make your repayments one of your financial priorities. Be strict on yourself when it comes to paying down your debt otherwise you could be slapped with late payment fees and hefty interest charges. If remembering to make your repayments on time isn’t your strong suit, set up automatic payments so you can simply set and forget - knowing your repayment will be paid on time. Alternatively, you can also set reminders on your phone. 

2. Consider taking out a debt consolidation loan  

If you’re heading into next year juggling multiple personal debts, a debt consolidation loan might be worth a look. These loans allow customers to roll their debts into one loan, meaning there’s just one regular repayment to worry about. Not only do these loans make managing multiple debts easier, in some cases the interest rate on a debt consolidation loan may end up being lower.

Just be mindful that your mortgage shouldn’t be rolled into a debt consolidation loan. This is because home loans are often longer loans (20-30 years) so by rolling in a mortgage you may end up paying more in interest over the life of the loan, rather than less.

Want to compare debt consolidation loans right now? Check out the table below!

Compare debt consolidation loans - last updated 27 May 2024

Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Unsecured Personal Loan


    interest rate
    comparison rate
    Monthly repayment
    6.75% p.a.to 26.95% p.a.
    6.75% p.a.to 26.95% p.a.based on $30,000
    over 5 years

    Borrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022, 2023 & 2024^'

    Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,430.23 including fees.

  • Unsecured Personal Loan


    interest rate
    comparison rate
    Monthly repayment
    5.76% p.a.to 24.03% p.a.
    6.55% p.a.to 24.98% p.a.based on $30,000
    over 5 years

    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.76% would cost $35,173.52 including fees.

  • Debt Consolidation Loan

    interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 19.39% p.a.based on $30,000
    over 5 years

    Competitive fixed rates on loans up to $75,000 depending on your credit score. Zero monthly account keeping fees, no exit fees and no early repayment fees. Make weekly, fortnightly or monthly repayments, over 1 to 7 years managed entirely online, at any time. Fast and easy, 100% online application.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.


3. Make extra repayments at every opportunity when you can 

The ability to make free extra repayments is a crucial feature to look for when it comes to a personal loan or car loan. So if your lender allows you to make additional contributions on your current product, do so when you can as it means you might pay less in interest. Similarly, avoid only making your minimum repayment on your credit card as that will mean the remainder of your balance may incur interest. Try and pay off your balance in full (or as much as you can) each month.

While it’s a good idea to make extra repayments on your debt, only do so if it's within your financial means. There’s no point making an extra repayment if it then means you can’t afford to pay your bills or buy groceries. Remember, some loans don’t allow customers to make redraws on extra repayments, so once you make a payment you may not be able to get it back. 

4. Find a balance transfer credit card  

If you have credit card debt hanging over your head, consider getting a balance transfer offer. Balance transfer credit cards allow customers to transfer some or all of their existing credit card debt onto a new card and pay it off over a period of time. Some credit card providers offer low rates or 0% during these balance transfer periods, which can last anywhere from a few months to over two years.

The catch with these card offers is to avoid making new purchases. Your goal is to pay back your debt faster and to save on interest repayments. Once the balance transfer offer period is over, any remaining balance on the card will start to be charged interest at the standard purchase rate, or cash advance rate.

5. Switch to low rate products

Refinancing your existing personal or car loan, or opting for a low rate credit card, may be a good way to reduce the amount of interest you pay in 2024. Just remember though, when switching products you’ll likely have new fees to consider, such as annual, monthly and application fees etc. Similarly there may also be fees involved when you move from your current lending product, such as exit fees.

It’s a good idea to weigh up such fees against the potential savings you’ll make by switching.

6. Don’t accrue more debt 

Your goal is to pay down your debt, not let it grow. So start making some changes now and enter 2024 knowing you’re not spending unnecessarily. Also don’t forget, banks and lenders will be able to record your good payment habits so that when it comes time to borrow money in the future you’ll have shown that you can manage your money commitments well. They might even reward you with lower interest rates.

7. Get rid of memberships you don’t use and limit excessive spending

Gym memberships, streaming subscriptions or even restaurant dining can take a toll on your wallet. If you’re planning to demolish your debt, it could be a good idea to review your finances and see whether there are any areas you can cut down in spending. By doing so and making extra repayments (if your lender allows), you’ll be able to finalise your loan sooner and head into 2024 knowing that you have less to pay off - and perhaps start saving

Looking for ways to save money this year? Check out more tips to help you save money when you’re already on a budget or jump over to our personal loan hub for more info on how to say farewell to your debt!

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Personal Loan Awards

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