5 Things You Can Do To Reduce Debt
All of us will face debt at some point in our lives, and the chances are that when we do, we will struggle to find ways to reduce debt. As all people who work with debt know, the majority of people spend months and even years trying to deal with their debts on their own and hiding their problems from others. People will only seek help when they get desperate and have exhausted every option. Often, some of these options were pointless anyway and sometimes actually increase their debt! So in this article, we’re going to give you 5 ways to reduce your debt right now that really are worth trying. All of them are based around the simplest way of saving money- budgeting.Remember though, if you need help, Your Debt Expert are debt management specialists; if you can’t deal with it yourself then get in touch.
Reduce Debt – Budget, Budget, Budget
This may seem like the obvious choice for people in debt, but it is often something which people forget to do! Most people who actually bother drawing up a budget are shocked at how much they can save simply by noting down what they spend and setting limits on it. In our card obsessed society, it is incredibly difficult to keep track of spending without making note of it.
Here Are 5 Ways To Reduce Debt
Reduce Debt – Food
By focusing in on how you spend money on food, you can save a huge packet. For starters, think about your supermarket shop. Supermarkets are designed to make you spend more money! The best prices are always hidden on the top and bottom shelves, out of your line of sight and good ‘deals’ are often still more expensive than buying the supermarket’s basic range. Plan ahead a budget for your monthly food shop and stick to it. Try buying in bulk and freezing your food to use for lunches throughout the week. All these simple things will help you save money on food and reduce your debt.
Reduce Debt – Household
Think about all the things you spend money on in your house- from energy bills to your TV license or Sky etc. Is there a way that you could save money and reduce your debt here? Statistics show that using comparison sites can really save you money on a whole range of household costs. As far as energy, you can always reduce your expenditure by clever control of your heating and by turning off all standby items.
Reduce Debt – Financial Services
Is your bank giving you the best deal on your finances? Many credit card companies offer 0% balance transfers, meaning that you can switch your credit card debt to a provider that will charge 0% for a period of time. Also think about whether switching your bank account will save you money- often people stick with their bank even though they aren’t really benefiting them. Consider moving your credit cards to reduce debt by finding a cheaper interest rate.
Reduce Debt – Travel
Transport can be one of the most expensive things in your budget and it can provide a great way to reduce debt from your finances. Think about what the cheapest way to get to your work is; could you get the bus instead of a car? Don’t forget one of the best forms of free transport- cycling! You could even do a car pool with one of your colleagues and pay them a little fuel money each week!
Reduce Debt – Luxuries
Think about everything you spend money on and assess whether you really need it. Far too many of us spend money on things we don’t need simply because we are used to it! Challenge everything you spend money on and very soon you will reduce debt from your life.
Budgeting is the best way for you to reduce your debts and these are the only sure fire ways free up more money to pay towards your debts. If you’re struggling to pay your debts though, you need to get expert advice. An expert will be able to really help you deal with your debts.
For more Ways to Reduce Debt and for the latest news and advice follow Peter Dean on Twitter – @your_debtexpert