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5 Unsecured Loans for Bad Credit Borrowers (2020)

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Obtaining a loan is a real challenge for the 16% of Americans who have bad credit. If your FICO score is below 580, you understand first-hand what it’s like to deal with bad credit, including the difficulty of acquiring credit cards and loans.

However, good old American competition means providers of unsecured loans for bad credit will always exist — this market is just too big to ignore. To be sure, unsecured loans are more expensive and harder to get than are secured loans.

But it’s hardly unusual for a consumer with bad credit to lack collateral for a secured loan. Therefore, the five unsecured loan networks in this review are critical resources for Americans with poor credit.

Lenders | Approval Tips | FAQs | Methodology

It’s wrong to treat all bad credit borrowers as a monolith. Some require a relatively modest loan on a short-term basis. Others may need longer-term or larger loans. And folks with really bad credit have the highest hurdles to overcome.

That’s why we’ve evaluated the best lending networks for specific needs. We judge all five to be well-established and reputable companies that will go the extra mile to get you the loan you need.

MoneyMutual: Best for Short-Term Loans

MoneyMutual specializes in finding short-term cash advances for bad credit consumers. You can specify a cash advance that you repay all at once on your next payday.

Alternatively, you can request an installment loan that you repay over a period of two or more months. Loan amounts of up to $2,500 are available if you have a steady income of at least $800 a month.

  • Short-term loans up to $2,500
  • Online marketplace of lenders
  • Funds available in as few as 24 hours
  • Simple online form takes less than 5 minutes
  • Trusted by more than 2 million customers
  • Not available in NY or CT

The process is simple and fast – just complete the brief loan request form to be matched to a lender on the MoneyMutual network. After submitting additional information, the lender will set the loan terms for your approval.

Your money will be deposited in your checking account as soon as the next business day. MoneyMutual has helped more than 2 million borrowers since its founding in 2010.

CashUSA.com: Best for Long-Term Loans

CashUSA.com can help you find a loan with up to 72 months to repay. You can qualify for a loan from $500 to $10,000 if you receive an after-tax monthly income of at least $1,000. You must also be a U.S. citizen or permanent resident, 18+ years old, with a checking account, home/work phone numbers, and a valid email address.

  • Loans from $500 to $10,000
  • All credit types accepted
  • Receive a loan decision in minutes
  • Get funds directly to your bank account
  • Use the loan for any purpose

It takes just a few minutes to fill out the short loan request form. If you qualify, CashUSA.com will forward you to a direct lender on its network.

You then complete the application process and receive a quick decision. If approved, you can expect your loan proceeds as soon as the next business day.

BadCreditLoans.com: Best for Really Bad Credit

Bad Credit Loans has been arranging loans since 1998 for consumers with really bad credit. It can match you to a lender on its network that offers loans with repayment periods of three to 36 months.

The recommended lender will have you supplement your Bad Credit Loans’ request and immediately evaluate your application. Upon approval, you’ll have your money as soon as the next business day.

  • Loan amounts range from $500 to $5,000
  • Experienced provider established in 1998
  • Compare quotes from a network of lenders
  • Flexible credit requirements
  • Easy online application & 5-minute approval
  • Funding in as few as 24 hours

To qualify, you must be a U.S. citizen, age 18+, with regular income, a checking account, and a valid email address. The lender sets the loan’s actual APR and term.

Even though you have really bad credit, this lending service will look beyond your credit score to qualify you for a loan of up to $5,000, although its lenders do not usually offer loans of more than $1,000 to borrowers with really bad credit.

PersonalLoans.com: Best for Large Loans

PersonalLoans.com is your best bet for a large bad credit loan of up to $35,000. To qualify, you must be a U.S citizen or resident, at least 18 years old, and have a steady monthly income, a Social Security number, and a bank account. This lending service operates in all 50 states.

  • Loan amounts range from $500 to $35,000
  • All credit types welcome to apply
  • Lending partners in all 50 states
  • Loans can be used for anything
  • Fast online approval
  • Funding in as few as 24 hours

PersonalLoans.com operates with a large network of direct lenders, including many that specialize in bad credit loans. The network welcomes cosigners who can help you receive loan approval and reduce your interest costs.

Lenders offer repayment periods of up to 72 months. Typically, your loan proceeds will be deposited into your checking account as soon as the next business day.

CashAdvance®.com: Best for Emergency Loans

CashAdvance.com is optimized to quickly get you a small, short-term loan of between $100 and $999 that you repay on your next payday. To qualify, you must have a monthly income of at least $1,000 after taxes.

You can apply if you are a U.S. citizen, have reached age 18, and can supply an email address and checking account number.

  • Loan amounts range from $100 to $1,000
  • Short-term loans with flexible credit requirements
  • Compare quotes from a network of lenders
  • 5-minute approvals and 24-hour funding
  • Minimum monthly income of $1,000 required
  • Current employment with 90 days on the job required

The direct lenders on the CashAdvance.com network set the loan APR and other terms. Conveniently, you can apply for an installment loan if you need a longer repayment period.

If your loan is approved, the loan proceeds can be deposited in your checking account as soon as the next business day. This lending service is not available in all states.

While the difficulties in getting an unsecured bad credit loan are significant, they are not insurmountable. You can improve the odds by adopting a long-term strategy to increase your credit score by paying your bills on time, reducing your credit utilization ratio, and refraining from applying for new credit.

However, substantially raising your credit score can take several months, even years. What do you do if you need a loan now?

The five loan networks in this review are an excellent place to start. If you want to explore other alternatives, here are some tips you’ll find useful:

  • Fix errors on your credit reports: You can instantly improve your credit score by disputing errors on your credit reports at the three major credit bureaus — Experian, TransUnion, and Equifax. You can get free copies of your credit reports at AnnualCreditReport.com.
  • Recruit a cosigner: Cosigners with good credit can make all the difference. A cosigner isn’t expected to help with repayments or to receive any loan proceeds but is on the hook if you default on your loan. Lenders are much more likely to approve an unsecured loan if you can provide a creditworthy cosigner.
  • Borrow from family or friends: This option depends on your personal relationships with individuals in a position to lend you money. On the positive side, you often can get a low- or no-interest loan with flexible payback terms. But the downside is significant: You can damage your relationships by failing to repay.
  • Get a credit card cash advance: If you have bad credit, you may not have any credit cards. Even if you do, the cards may have very tight cash advance limits. This alternative is best for small or emergency loans you can repay quickly. The APRs on cash advances from bad-credit credit cards are typically in the 20% to 30% range, but higher rates are possible.
  • Apply to a credit union: Credit unions are good options because they try hard to accommodate the needs of their members. The maximum APR on credit union unsecured loans is 18%. Most credit unions have specific criteria to join, but many have easy-to-achieve enrollment requirements.
  • Apply for a person to person (P2P) marketplace loan: P2P marketplaces provide an opportunity for borrowers and lenders to find each other. Many P2P lenders are willing to offer bad credit loans on negotiated terms.

Our list does not include home equity loans and cash-out auto loans, because they are secured by your home or car. However, if you have equity in your home or car, you may want to consider these alternatives.

Our five recommended lending networks offer unsecured loans to folks with bad or no credit. They have many things in common:

  • All are loan matching services that facilitate direct loans from the lenders on their networks.
  • Their services are free — they make their money by collecting fees from the lenders on their networks.
  • All have similar prequalification criteria, including U.S. citizenship or residency, a minimum age of 18, a reliable source of income, and a checking account, email address, and work/home phone numbers.
  • They are all designed to work fast. If you are approved, you can often receive your loan proceeds as soon as the next business day.

That’s not to say they are all equally suited for every type of unsecured loan. If you need a short-term emergency loan, you may want to start with MoneyMutual or CashAdvance.com. They each offer loans with short repayment periods, some as soon as your next paycheck.

Conversely, if you want a larger, long-term loan, consider PersonalLoans.com or CashUSA.com. Both offer loan terms as long as 72 months and loan amounts up to $35,000 and $10,000, respectively. And if your credit is really bad, try Bad Credit Loans, which has extensive experience with lenders who are willing to accommodate borrowers with bad credit.

To recap, we’ve rated the following loan companies as being the best for bad credit borrowers:

  • MoneyMutual: Best for Short-Term Loans
  • CashUSA.com: Best for Long-Term Loans
  • BadCreditLoans.com: Best for Really Bad Credit
  • PersonalLoans.com: Best for Large Loans
  • CashAdvance.com: Best for Emergency Loans

Our favorite short-term loan company for bad credit is MoneyMutual. Since 2010, it’s been matching bad credit borrowers to a network of direct lenders.

MoneyMutual offers a versatile menu of loans. You can get a short-term cash advance that you repay when you receive your next paycheck or an installment loan you can repay over a period of three to 72 months.

CashUSA.com is our top pick for long-term loans. It allows you to space out repayments over periods up to 72 months in length.

Loan amounts range from $500 to $10,000 for applicants with a monthly income of at least $1,000 after taxes. This loan matching service promises quick processing and you can receive your loan proceeds as quickly as one business day.

If your credit is truly in the tank, we suggest you consider Bad Credit Loans, our top choice for really bad credit. In business since 1998, it can arrange loans that give you from three to 36 months to repay. Although it offers loans of up to $5,000, it caps loan amounts at $1,000 for consumers with very bad credit.

Perhaps you’d prefer to get a loan from a peer-to-peer (P2P) lending network. PersonalLoans.com, our top-rated company for large loans, partners with several lenders who offer P2P loans in addition to unsecured bad credit loans via its online lending network. These lenders generally prefer borrowers with a minimum FICO score of 600, but there are always exceptions.

We judge CashAdvance.com as the best choice for emergency loans ranging from $100 to $999. These are short-term loans that you fully repay on your next payday.

However, you can also arrange longer-term installment loans if that better suits your needs. Loan decisions and funding are fast, with your money deposited to your checking account as soon as one business day.

Typically, lenders check your credit score and credit history when evaluating your loan application. But a credit check is problematic if you have bad credit or no credit history. The answer may be to apply to a lender that doesn’t do a credit check.

The five loan services reviewed here all arrange no-credit-check loans, but keep in mind that this type of loan typically results in reduced loan amounts with higher interest rates. You can improve your chances of approval by borrowing only the money you need and demonstrating your capacity to repay.

No Credit Check Loans

When lenders evaluate a no-credit-check loan, they will want to know about your income, expenses, and debts. Income should be reliable, stemming from employment, Social Security, a pension, etc. Your expenses, including rent/mortgage and debt payments, must leave enough money from your monthly income to repay a new loan.

Certain types of loans are more attainable despite the lack of a credit check. You increase your chances of approval by recruiting a cosigner with good credit, especially when your cosigner approves his or her own credit check.

Another alternative is a secured loan, such as a cash-out refinance loan. With a secured loan, lenders are less concerned about your credit. Instead, they require that the value of the loan collateral exceed (usually by 10% to 20% or more) the loan amount.

If you have equity in an asset and use it as collateral, remember that the lender will seize the asset if you default on the loan. That means your house can be foreclosed, and your car can be repossessed.

Guarantees are available in the world of finance, but they do not extend to the ability to obtain a loan when you have bad credit and a problematic credit history.

Instead of thinking in terms of loan guarantees, it’s more realistic to consider lenders that maintain flexible requirements. In this sense, the five lending networks in this review guarantee making every effort to approve your loan.

To protect themselves, lenders use several strategies to guarantee a loan. These include limiting the loan amounts, charging higher APRs, requesting cosigners, tacking on additional fees, and accepting collateral. If the purpose of the loan is to purchase a home or vehicle, the lender will require a down payment, which ensures you are suitably motivated to repay.

The one place where loans are truly guaranteed is in the mortgage market. The Federal Housing Administration and other government agencies offer mortgage guarantees that protect lenders from default risk. Typically, you will need to purchase mortgage insurance to help protect the guaranteeing agency.

You will have less need for a “guaranteed” loan if you can improve your credit score. A higher score gives you more borrowing options. You can work toward a higher score by:

  • Paying your bills on time.
  • When repaying credit cards, pay more than the minimum amount due.
  • Reducing your credit utilization ratio, which is the amount of credit you are using divided by the amount available to you.
  • Fixing errors on your credit reports.

You can also improve your approval chances by increasing your income and/or reducing your monthly expenses. Lenders look at your debt-to-income ratio (i.e., your monthly debt payments divided by your monthly gross income) when assessing your creditworthiness. For example, many mortgage lenders require a DTI ratio no greater than 43%.

When it comes to personal loan providers, competition is the name of the game. Among other things, this means that there is no universal minimum for the credit score you’ll need to obtain a personal loan.

FICO scores range from 300 (worst) to 850 (best). The average FICO score for American consumers is 704.

If your FICO score is very poor (below 580), you’ll be best served by lenders who work with low or no minimum credit scores. You can start with the five loan networks in this review. They all arrange loans for bad credit consumers as well as no-credit-check loans.

Avg Loan APRs

In addition, some online lenders use metrics other than credit scores when underwriting loans. For example, Upstart considers factors such as your experience and education when evaluating a loan application. These factors include your years of credit, area of study, and job history.

Peer-to-peer lending marketplaces, such as Lending Club, require a minimum credit score of 600. If you qualify, your loan request is posted in the marketplace, allowing individual investors to offer you a loan.

You can remove credit score considerations by getting a secured personal loan. With this kind of loan, you put up one or more collateral items to guarantee a personal loan. Collateral can include cash, securities, or property.

If you are able to obtain a loan despite having bad credit, consider it an opportunity to improve your score. You can do this if the lender reports your payments to one or more of the credit bureaus. To improve your score over time, pay on time, never miss a payment, and reduce your overall debt.

This list of the best unsecured loans for bad credit evaluates lending networks consisting of partner lenders that approve applicants with low credit scores. We assessed the ease of approval, time of funding, reporting to the credit bureaus to help build credit, rates and terms offered, fees charged, and Better Business Bureau grades, among other criteria relevant to this article to determine the rankings.

CardRates’ reviews undergo a thorough editorial integrity process to ensure that content is not compromised by advertiser influence.



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Possible Raises Series B and Moves Fully Remote | State News

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SEATLLE, Oct. 20, 2020 /PRNewswire/ — Possible raises $11 million in new equity funding to expand the team and to provide additional products for its customers. Union Square Ventures led the round, with participation from existing investors Canvas Ventures, Unlock Venture Partners, Columbia Pacific Advisors, Union Bay Partners, Tom Williams, and FJ Labs. The company has also secured $80 million in new debt financing from Park Cities Advisors.

Furthermore, the company is now fully remote and recently onboarded software engineers from across the US and the globe. Possible is committed to distributed work and actively recruiting for a number of other remote roles.

Possible provides friendly access to capital and a simple way to build credit for people who otherwise would get a payday loan or get hit with a bank overdraft fee. The company uses real-time financial data, rather than a credit score, to qualify customers and provide funds instantly through its iTunes and Android apps. Unlike payday loans or overdraft fees, Possible loans are paid back in small installments over multiple pay periods to allow customers to catch their breath. By reporting on-time payments to the credit bureaus, Possible enables its customers to build credit history and eventually qualify for cheaper, longer term financial products. On average, customers with low credit scores see their scores increase by 70 points within 4 months.

Tony Huang, Possible’s CEO explains, “So many people who live paycheck to paycheck can’t afford to build credit history. We’re helping them do it for the first time while providing them with a friendlier and more affordable small-dollar loan.”

Since launching in June 2018, Possible’s given out loans to hundreds of thousands of customers, helping meet short-term cash needs while building credit history or establishing credit for the first time. These customers, often with bad credit or no credit history, are underserved by traditional banks. Possible fills that gap and provides financial access to those who need it most while giving them the means to climb their way out.

Gillian Munson, Partner at Union Square Ventures, explains the thesis behind their new investment, “Through tech innovation, data-driven insights, and a focus on the customer, Possible is well on its way to winning the hearts and minds of both consumers and regulators alike, and building a trusted brand that endures.”

A 2019 Experian study shows 34.8% of consumers are subprime and can’t access money when they need it. They pay $106 billion in punitive fees each year to the existing financial system for short-term credit products. These consumers are trapped in predatory debt cycles of payday loans and overdraft fees without the means to rebuild their credit or improve their financial health. While there has been a number of new tech-enabled products in this space, most lead to similar debt cycles and don’t address the harder issue of improving long-term financial health. That’s where Possible comes in.

Since the company is now fully remote, Possible is actively hiring talent across the globe. Tyler, Possible’s CTO, explains, “Being fully distributed allows us to access the talent pool of the entire world. Our success so far is a reflection of the quality of our people, and we believe hiring globally will allow us to find exceptional people to join us in achieving our mission.”

About Possible

Possible is a fintech company based in Seattle, Washington. The company provides a friendlier and easier way for customers to access capital while also building credit history and improving long-term financial health.

About Union Square Ventures

Union Square Ventures is a thesis-driven venture capital firm based in New York City. USV manages over $1 billion in capital across seven funds and focuses investments in portfolio companies with the potential to transform important markets.

About Park Cities Advisors LLC

Park Cities Advisors LLC (“PCA”) is a privately held, SEC-registered alternative credit manager based in Dallas, Texas. PCA is focused on private lending across the specialty finance and FinTech sectors and provides debt capital to companies across a variety of industries through asset-based financing transactions.



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Business Loans – Make The Right Choice!

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Your business needs funding and there’s no denying that! ‘You need money to make money’ and this is most applicable in the business world! While it is fairly easy to start with an awesome idea, to make a business profitable, you need to invest a good chunk of capital.

Whether to buy equipment or hire the right minds, you need capital! And the best way to go about it is to search for the ‘right’ business loan solution. Finding the ‘right’ one amongst the plethora of available options is a tricky decision.

You’ll be under stress to match the repayment frequency. And thus, your business will suffer. Hence, finalizing the right business financing solution after analyzing your business structure, repayment terms, cash-flow, and urgency is the best practice.

Here’s a detailed breakdown of which business financing solution or small business loan will help your business better!

1. For Real Estate – SBA

SBA loan is one of the most popular loans for small business owners. This is pretty straightforward to understand but involves extensive paperwork. If you need a place to kickstart your business, this is most suited for you.

It is issued by a private lending party or a bank. But the interesting part is that this loan can be guaranteed up to 85% by the federal agency—Small Business Administration (SBA). Hence, lending institutions are free and content to give the loan.

The best things about this loan are the lowest down payments and low-interest rates. If you wish to pay in the very long term, you can do so. An SBA loan involves a lot of flexibility. The condition being you should have the right financial service provider to guide you.

2. For An Equipment Or Any One-Off Loan – Equipment Financing, Term Loan

Do you need a new computer, or a tablet for your employee, or maybe a vehicle for your business’ delivery needs? Equipment financing is best suited for such kinds of needs. You can also get up to 100% financing solutions.

But there is one drawback that you should be aware of. As long as the repayments are done on time, you’ll continue to have access to the equipment. But the moment you fail short of your commitment, the lending institution has completed control over ceasing it.

A business term loan is another solution for this kind of requirement. Term loans are based on the ‘term’ that can be anywhere from 1 to 5 years. So, the repayment has to be made in that time-frame. If you’re looking for business loans in Edgewater, NJ, this will be just about right for you!

3. Need To Balance Cash Flow – Business Line of Credit

Business Line of Credit is the best financing solution that can help you with balancing your cash flow or handling any emergencies.

You get access to a limited amount of funds for a set period of time that you need to pay with interest and as soon as you pay it back, your specific balance sheet is turned back to ‘0’. This indicates that you’re again eligible for using that fund.

You can do it repetitively. There is no drawback to this mechanism. So every time you have an emergency fund need, you can look towards the business line of credit.

The only shortcoming of this system is that the interest rate is high and may require collaterals for approval. However, it is one of the most appealing choices if you need capital and have a bad credit score!

4. Credit Card Based Businesses – Merchant Cash Advance

Do you own a business that involves payments via credit cards? If yes, then the merchant cash advance is the right solution for you.

A business like retail or food chain that makes use of credit card transactions the most, can utilize merchant cash advance to boost its business. The way this financing system works is, the lender will enquire about your daily credit card transactions to the terminal provider and get your exact details. Then, he will compare it with the asked amount. If both are in accordance, you’ll become eligible for the advance.

The repayment term is interesting for this financing solution. Instead of getting a fixed rate, the advance provider will give you the figure in percentage. So every day if you make $1000 and the decided percentage is 5, then $50 will be ‘withheld’.

A merchant cash advance acts more like an investment than a loan!

5. Have No Collateral – Invoice Financing, Equipment Financing

Not all businesses have the luxury of putting collateral on the line and getting access to the desired fund. If you fall into the same category, you do not need to worry! Invoice financing can help you out even in this crunch situation.

Your account receivables serve as collateral in this financing solution and can help you get a loan up to 85% of its worth.

The only downside is the interest rate that is marginally higher than the traditional solutions.

Bonus: For A Small Duration – Short Term Loan

What if you need a loan just for 18 months? You have some debt or need to manage the cash flow, but your requirement is small. Which loan is right for you?

Well, you can opt for a short term loan. This loan gives you instant access to a lump sum of money that should be paid within the next 18 months.

The best part about this loan is that bad credit doesn’t bother the process!

This can also support businesses that need temporary loans to manage or settle a few things. Businesses that do not need some loan that lasts for years!

But just like all other financing solutions, this loan as well comes with a few drawbacks.

The first one being the annual cost will be slightly towards the higher side and the second being that a few businesses may find it hard to cope-up with the weekly payments.

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Financial advisor Helen Baker shares the six saving tricks to help you save THOUSANDS

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A leading financial advisor has shared the saving tricks that will help you to save thousands in a short amount of time, including adopting the 50/30/20 method and never signing up for financial products on your partner’s behalf.

Helen Baker, from Queensland explained that if this year has shown us anything, it’s that you need to have some spare money in the bank in case of loss of income.

Helen revealed the top tips and tricks to help you save tens of thousands of dollars, no matter what your salary or financial goals are.

Helen Baker (pictured), from Queensland, shared the saving tricks that will help you to save thousands in a short amount of time

Helen Baker (pictured), from Queensland, shared the saving tricks that will help you to save thousands in a short amount of time

1. Use the 50/30/20 strategy to control spending

The first way that Helen said you can save a bit more than you already do is by adopting the 50/30/20 strategy to control your spending.

‘This simple yet effective budgeting method involves dividing your after-tax income into three categories,’ she told FEMAIL.

Put 50 per cent of your net income towards ‘must-haves’ like rent, utility bills, school fees and groceries, then reserve 30 per cent for your ‘wants’, like dining out, fashion and entertainment.

Finally, Helen said you need to keep 20 per cent back for loan repayments or building up your savings.

This simple approach will help you to save thousands over the course of a single year.

The first way that Helen said you can save a bit more than you already do is by adopting the 50/30/20 strategy to control your spending (stock image)

The first way that Helen said you can save a bit more than you already do is by adopting the 50/30/20 strategy to control your spending (stock image)

2. Consider salary sacrificing to superannuation

Helen’s second tip involves you voluntarily sacrificing some of your salary to your superannuation.

‘If you are looking to save a deposit for your first home, the First Home Super Saver Scheme enables you make voluntary contributions in your super fund and withdraw up to $30,000 of eligible contributions towards your home deposit,’ she said.

Concessional contributions made to an approved super fund are taxed at just 15 per cent, rather than the marginal rate of up to 46.5 per cent on your regular pay.

‘If you have an income of $70,000 and want to put $15,000 towards a home deposit, you can end up paying nearly $4,875 of that $15,000 in tax,’ she said.

By contrast, if you sacrifice $15,000 a year into your super through the First Home Super Save Scheme, you pay just $2,250 in tax per year and could have around $25,000 available for a home deposit after two years.

3. Avoid signing up for products on your partner’s behalf

It might feel tempting to sign up to products on your partner’s behalf as you are a couple, but Helen said it’s best to avoid taking out a credit card, loan or mobile phone plan on your partner’s behalf, in your name.

‘If your partner falls behind on repayments, it can affect both your credit ratings, and if you break up or your partner accumulated debt, and you are married or defacto, you will be liable for their debt,’ she explained.

Avoid rushing into joint bank accounts or co-signing loans, she added.

Even though it’s important to have joint finances and accounts when you’re in a long-term relationship or marriage, you must also have your own savings and emergency fund. 

Helen said it's best to avoid taking out a credit card, loan or mobile phone plan on your partner's behalf, in your name (stock image)

Helen said it’s best to avoid taking out a credit card, loan or mobile phone plan on your partner’s behalf, in your name (stock image)

4. Hide your savings account from yourself

When you set up a savings account, there is always a temptation to dip into it when you need a boost.

But Helen said you should set up a separate bank account for your savings, and ideally one that you can’t access with your current banking app.

‘Choose a savings account that charges withdrawal fees,’ she added – as the harder and more expensive it is to access your account, more likely you are to realise your savings goals.

5. Cut your spending instead of increasing your income

Smart spending can be just as good, if not better, than increasing your income, Helen said.

‘Look at expenses that you can cull, such as a subscription that you rarely use,’ Helen said. 

You could also cut dining out as much and look after your existing items so you can use them for a longer period. 

6. Create a bill strategy 

Helen recommends that you outline all of your bills in a spreadsheet so as to avoid incurring any late fees and pay every bill when it’s due. 

‘Ensure your calendar gives you adequate time to thoroughly check invoices and make sure you are not being overcharged,’ she said.

Try to group any bills into categories of $100, $100-$500 and $500 plus. 

‘Smaller bills, such as mobile phone plans or other monthly service utilities, can be paid by setting up automatic payments,’ she said.

‘Larger bills, such as tax, rent or mortgage repayments, require more diligence. It is also crucial to pay substantial bills on time to avoid incurring a bad credit rating.’ 

Helen is a spokesperson for money.com.au. For more information, please click here

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