Visualise goals to help reduce debt, expert says

Credit card holders can help to reduce their personal debt by visualising future spending, an expert has said.

Larissa Zimmerman, director and founder of National Financial Fitness, told the Sydney Morning Herald that having a positive mindset is just as important as getting personal finances in order when it comes to debt reduction.

Ms Zimmerman said that when a person decides to reduce debt, it is crucial that they know why they want to achieve that goal. She added that setting targets for the extra cashflow would help.

"Instead of a pop idol on the wall, you get pictures of what you want and put them up. It might be a picture of a holiday destination or a good school for your children. It is about engaging the subconscious mind and then putting in place the practices to achieve those goals," said Ms Zimmerman.

Writing for the Sunshine Coast Daily, Paul Clitheroe, director of financial planning firm ipac, recently said that high credit card bills are encouraging Aussies to compare debit cards before switching to this safer alternative.

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