5 spending reducers: 1.
Stop your debt from increasing any further! If you want to get your debt under control, the first thing is to make sure it doesn't get any bigger.
If you have credit cards, cut them up, you can always order a new one later once your debt is under control.
Wipe all cookies/passwords from your computer that are related to your credit card accounts so that you cannot spend online.
2.
Do a budget - People get in debt by and large because they spend more than they earn.
You need to know exactly what you are spending your money on in an average month.
Keep a notepad and write all your spending down.
3.
What can you cut out? When you know what you're spending your money on, then you can work out what you can cut out.
Yes it might mean some lifestyle changed, but you need to do whatever it takes.
Focus on the non-essentials, satellite TV deals, superfast broadband packages, mobile phone tariffs, alcohol, cigarettes, eating out,, magazine subscriptions etc.
4.
Where can you save? Even with the essentials you could save money - central heating costs(change supplier, loft insulation, turn thermostat down by 1 degree), transport(walk to work, car pool, take bus), food shopping(do you pay more for brand names?), tax(if you are self-employed, are you paying more than you should?), make packed lunch for work instead of buying lunch.
5.
Buy bulk items - You can make savings by buying some things in bulk - if you have a Costco card or knows a friend who has one, you may be able to get bulk items that can be stored (e.
g.
tinned foods, toiletries, office materials, crisps/potato chips, juice/soda etc) 5 income boosters 6.
Welfare benefits - Increase you income by making sure you are getting all the social security or welfare benefits you are entitled to.
7.
Work some overtime - If your employer is OK with you doing this, even an extra hour a day can make a big difference(e.
g.
1 hr/day, 5 days/week at $10 per hour is $200 per month) 8.
Work an extra shift - Depending on your home/family circumstances you might be able to do this.
If you did 8 hour shift at $10 per hour once per week, that's $320 per month.
9.
Work an extra job - This can be tough and you need to watch other commitments, but a Saturday job could bring in some much needed extra income.
10.
Sell some stuff - Maybe you have some things in your house you don't need any more.
Why not turn it into cash that can be used to reduce your debt? Try a yard sale/car boot sale.
Sell some stuff on eBay or in your local newspaper.
As you reduce your spending and increase your income, hopefully you should start to balance your budget and have some money left over.
Use all of that extra money to start paying off that debt.
Don't be tempted to just manage your debt by just paying the interest.
If you are serious about reducing your debt, you will need to be paying at least 50-100% of what your interest charges are each month if you want to see it decrease.
Wishing you every success on your path to debt freedom!
Stop your debt from increasing any further! If you want to get your debt under control, the first thing is to make sure it doesn't get any bigger.
If you have credit cards, cut them up, you can always order a new one later once your debt is under control.
Wipe all cookies/passwords from your computer that are related to your credit card accounts so that you cannot spend online.
2.
Do a budget - People get in debt by and large because they spend more than they earn.
You need to know exactly what you are spending your money on in an average month.
Keep a notepad and write all your spending down.
3.
What can you cut out? When you know what you're spending your money on, then you can work out what you can cut out.
Yes it might mean some lifestyle changed, but you need to do whatever it takes.
Focus on the non-essentials, satellite TV deals, superfast broadband packages, mobile phone tariffs, alcohol, cigarettes, eating out,, magazine subscriptions etc.
4.
Where can you save? Even with the essentials you could save money - central heating costs(change supplier, loft insulation, turn thermostat down by 1 degree), transport(walk to work, car pool, take bus), food shopping(do you pay more for brand names?), tax(if you are self-employed, are you paying more than you should?), make packed lunch for work instead of buying lunch.
5.
Buy bulk items - You can make savings by buying some things in bulk - if you have a Costco card or knows a friend who has one, you may be able to get bulk items that can be stored (e.
g.
tinned foods, toiletries, office materials, crisps/potato chips, juice/soda etc) 5 income boosters 6.
Welfare benefits - Increase you income by making sure you are getting all the social security or welfare benefits you are entitled to.
7.
Work some overtime - If your employer is OK with you doing this, even an extra hour a day can make a big difference(e.
g.
1 hr/day, 5 days/week at $10 per hour is $200 per month) 8.
Work an extra shift - Depending on your home/family circumstances you might be able to do this.
If you did 8 hour shift at $10 per hour once per week, that's $320 per month.
9.
Work an extra job - This can be tough and you need to watch other commitments, but a Saturday job could bring in some much needed extra income.
10.
Sell some stuff - Maybe you have some things in your house you don't need any more.
Why not turn it into cash that can be used to reduce your debt? Try a yard sale/car boot sale.
Sell some stuff on eBay or in your local newspaper.
As you reduce your spending and increase your income, hopefully you should start to balance your budget and have some money left over.
Use all of that extra money to start paying off that debt.
Don't be tempted to just manage your debt by just paying the interest.
If you are serious about reducing your debt, you will need to be paying at least 50-100% of what your interest charges are each month if you want to see it decrease.
Wishing you every success on your path to debt freedom!