In this day and age it is very difficult to get by without having at least one credit card, but most people make the mistake of having too many and then end up having seriously large amounts of money that needs to be paid back.
Here are ten simple little things that you can start doing today to reduce your debt.
Stop adding to the debt – Put your credit cards away so that you are not tempted to spend money on this that you do not need. You need to get the amount lower, not higher.
Add money to your budget – If you can get a part time job that is great, but if you cannot, then why not sell some of the items in home that you really do not use, such as old furniture or electrical goods. Take that cash and out it into your debt.
Make shopping lists – If you go to the store with a list of the items that you really need to get, you will be less likely to end up buying things that you do not need or that you already have at home. Remember to look for the store’s own brands instead of expensive alternatives; you can save a small fortune by not buying big brand names.
Get Saving – A good way to clear your debts is to start saving. Put a designated amount away each month into an ISA by setting yourself a target amount that will wipe away your debt. Remember to look online for accounts with rewards or the best interest rates – sites such as Aviva offer various different saving options.
Check your expense list over and over – Just like with your shopping list, you need to take a good look at what you are spending money on each month and see where you can cut down. Some bills have to be paid, but others can be reduced or eliminated completely,
Keep track of what you spend – Utilize online personal finance software and keep a check on every penny that you spend. If you do this for a few months, you will realize just how much money is being spent on things that you really do not need. Take the money that you save and pay it into your debts.
Change your focus – If you are the type of person that only pays the minimum each month, then you should try to pay off the smallest account. Once that is paid in full, then move onto the next lowest debt and continue doing this until they are all paid.
Look for better terms – if you have a good relationship with your bank, it may be a good idea to speak to them regarding lower rates, which will then help you to reach your goal faster.
Stick with your decisions – Deciding on a plan of action and sticking to it will bring you much closer to your goals and a lot faster as well. Making small changes can have a big impact on your financial well – being.
Get help – If you are the kind of person that is not very good with budgets, then you need to get someone who can assist you with planning. A credit counsellor can help you devise a plan that will suit your individual needs