Being debt-free is a reality many of us hope to achieve. Whether it’s a credit card, personal loan, mortgage or other debt, these seven strategies could help you take charge of your debts and boost your financial fitness in 2020:

1. Knowledge is power.

You could create a monthly budget as a sensible first step. There are plenty of budgeting apps out there but even a simple spreadsheet can do the trick. You could create two columns – one for income, and the other for expenditure. Carefully check your spending history over the last 12 months and identify ways you could trim back. Ensure your expenses don’t exceed your income and divert any savings onto your debts, starting with the one with the highest interest rate. Living within your means by sticking to a budget is an important step towards improved financial wellbeing.

2. Pledge to reuse and recycle

Could 2020 be the year you do something positive for your bank balance and the environment? Disposable, mass-produced goods end up in landfill, while vintage clothes and homewares from markets and second-hand stores have a unique charm of their own. Adopt a ‘nothing new for 12 months’ mantra and you could watch your savings grow.

3. Stop eating your savings

Eating (and drinking!) out costs a lot more than eating in. If you cut back on restaurants, cafes and take-away coffees, you can use the savings to pay down any debts.

Seek out the simpler things in life that bring family and friends together without incurring expense. You could consider weekend bike rides, board game nights, picnics, fuss-free BBQs and get-togethers.

5. Be ruthless with subscriptions

Subscriptions, memberships and in-app purchases can quickly eat into your savings without you even noticing. Cancel a few of these regular expenses and you could find it easier to pay down debt.

6. Reduce 'life' expenses

You could reduce the cost of some of life's unavoidable expenses such as electricity and gas, insurance premiums and even your mobile phone plan. By investing a couple of hours to call your providers, you could end up paying less for these items, giving you more capacity to reduce your debt.

7. Home loan health check

With interest rates at record lows, you could consider reviewing your home loan. One option may be to speak with your home loan provider about negotiating a better rate. Knowing exactly what your repayments are each month could help with budgeting and paying down debt.

If you take action now, you could achieve more of your financial wellbeing goals in 2020.