Easy Ways To Lower Your Debt

If you are anything like most people, you will have, at some stage, drifted into debt.

Sometimes, you give in to temptation. Other times, life knocks you sideways and you have to spend more money than you would like to solve a problem. For example, your car could break down and become impossible to repair. In this case, you may have little choice but to take out a loan you can’t afford to buy a new one. These things happen, but, as you will see, there are ways to reduce your chances of going into debt.

Look for expenses you can eradicate
Once you know your living costs, you can take a critical look at things and spot where you can instantly save money. For example, if you are paying for a gym membership and not using it, just cancel. You can do that very quickly and start to benefit immediately.

Look at ways to reduce the remaining bills.
Next, take those unavoidable bills and see if you can do anything to reduce them. Switch energy providers; get quotes for your mobiles, internet and insurance before renewing them. That type of thing can easily save you hundreds.

Reducing what you spend on incidentals
Also, look at the little things you do. Visiting a café several times a day can cost a lot of money. So, consider going less frequently or switching to a cheaper place.
Take your income and deduct the unavoidable bills like your electricity from the total to see how much disposable income you have. Decide how much of that you are going to continue to spend and save the rest.

Maximise your savings
The more you save the better. Savings give you options and play a big part in avoiding debt.
When you have money put aside, life’s emergencies do not have such a serious impact. If you lose your job, you can dip into your savings instead of being forced to take out a very expensive payday loan.

Learn to borrow cheaply
While you are building up your nest egg you may have to borrow occasionally. If you do so, make sure you do it in the cheapest way possible. Educate yourself about the options now. That way in an emergency you will know where to turn and not be forced into making a bad decision. This article by the Citizen’s Advice Bureau is an excellent source of advice on this subject.