DEBT043 How to create savings while paying off debt (658 words)

It's understandable to feel like you'll never get out of debt, save money and get ahead financially. Changing your thinking around your finances, however, and making sure your money is working for you will reap great rewards over time. In this article, we've outlined a few ways you can create savings while paying off debt.

Over the past 30 years, Australians' household debt has increased. According to the Reserve Bank of Australia, our household debt-to-income ratio has risen from 70 per cent in the early 1990s to around 190 per cent today. With numbers like this, it's understandable that you might feel like you'll never get out of debt. Changing your thinking around your finances, however, and learning how to make sure your money is working for you will reap great rewards. Below, we've outlined a few ways you can create savings while paying off debt.