What you can do to reduce your debt today?
How much do you owe, and to whom? If your repayments exceed 20% of your net income, you should do all you can to bring it down to something more manageable.
Use Excel to your advantage: start a budget sheet and track your expenses every month.
If you can be disciplined enough to only spend a certain amount each week, you’ll become used to doing without when it runs out.
Why get more debt when you’re already struggling? Finish your current debts before borrowing more. This will not only force you to be disciplined, but it will be better for your finances.
Organise your bills yourself, or pay someone to do it for you. It simplifies your life: you’ll never forget to pay something again and you’ll know how much of your income goes towards debt.
Review what you’re spending on your services; you could save hundreds of pounds a year by switching to a different provider. Are you getting the best deal from your insurance company? Phone them to negotiate a better rate and make sure your travel insurance does not include items that are covered by your home contents insurance.
What other credit card or personal loans options are there? There may be things available with better rates and fees; however, be sure that those fees will remain the same and that they are not promotions designed to lure you to a different provider.
Try to avoid store charge cards or use them minimally; they are convenient, but have high credit rates. Pay cash if you can and compare prices. The market is competitive, so you’ll be rewarded by looking around at many different products.
Maintain a good relationship with your bank. Speak to a relationship manager or read the website of the bank for information on different current and savings accounts.
One of the best ways to save money is by switching or restructuring your mortgage. Calculate how much you’re left with after transfer charges and legal fees are deducted and decide whether this is something you want to do.