Quick Ways To Get Out Of Debt

Quick Ways To Get Out Of Debt – This blog explains 7 ways to get out of debt fast. Here are seven things my husband and I did to pay off £36,000 over two years.

The average total debt per household in the UK, excluding mortgages, is around £15,385, according to a report by the Trades Union Congress (TUC). This report was written in 2018, and taking into account the events of 2020, the numbers are expected to be much higher starting in 2020.

Quick Ways To Get Out Of Debt

With more than 8.3 million people in the UK in debt, it’s more important than ever to talk about money and provide solutions to help people pay off their debt.

Guide On How To Get Out Of Debt Faster

So in this blog post I’m going to share the 7 things my husband and I did to pay off over £36,000 in debt in two years. It wasn’t easy and it definitely took a lot of blood, sweat and tears. But if you’re willing to participate in the process, you too can become debt-free and achieve all of your future financial goals.

When we got tired of being in debt and not having enough money to pay our bills, we finally had to admit to ourselves that there was a problem. We had fallen into a deep hole and it was our responsibility to get out of it. Confront your guilt, don’t run or hide from the situation. Don’t bury your head in the sand. Make a list of all the debts you owe and add up the total.

This step was very difficult for us. We knew we had a lot of debt, but we had no idea it was worth over £36,000. Seeing those numbers on a spreadsheet was just the nudge we needed to motivate us to commit to becoming debt free.

Once you recognize the problem and know exactly how much debt you have, the next step is to create a budget. There are many different ways to budget. My personal favorite is zero-based budgeting. In this method, income minus expenses equals 0. You need to know exactly how much comes in and how much goes out of your account in different budget categories each month. This will prevent your money from slipping through your fingers.

How To Get Out Of Debt Fast (even On A Low Income)

If you don’t have a budget and don’t know where to start with your budget, I recommend downloading a free scratch-based template. But if you need more help, schedule a financial coaching session and I’ll be happy to help you set your budget and get it on track.

Once you’ve set a budget and know exactly where all your money is going, the next step is to find ways to rationalize your spending. Review all of your spending categories and find ways to save in each category.

There are some categories that are fixed and you can’t do anything to reduce them. But there are other expenses that can be very volatile, so making some lifestyle changes can help you reduce them and free up money to pay off your debt.

For example, when we first started creating a budget and looking for ways to cut costs, one of the things we did was save big on our grocery budget. I was able to reduce my food spend from £300 to £200 a month by switching from online shopping at Tesco to Aldi and markets. Another way we were able to save was by canceling some monthly subscriptions and putting a limit on our fun money.

Ways To Get Out Of Debt In 2023

Cutting my budget like this meant I would have a lot more money left over each month to pay off my debt.

Once you’ve cut your expenses as much as possible, calculate exactly how much you can afford to cover in debt each month, then calculate your potential debt-free days.

For example, if your total debt was £10,000 and you could cover £175 towards that in your monthly budget, you can calculate your potential debt-free days.

£10,000 / £175 = 57.14 months, or 4 years and 9 months to be debt free.

How To Get Out Of Debt In 4 Easy Steps

If you don’t mind taking nearly five years to pay off £10,000 of debt, you don’t even need to follow these steps. But if you want to get debt free faster, you need to find ways to increase your income.

One of the things I did when I was trying to pay off debt was a side business. I sold things around the house that I no longer used. I cut hair for friends and family, while my husband worked overtime at work and did personal work. Get creative and think of different ways to earn extra money. Any extra money you make goes straight to the debt.

Find ways to earn extra money to pay off your debt, such as freelancing, working overtime, selling items, or using survey sites.

When you start earning extra income, it can be tempting to spend it but don’t. If you discipline yourself and invest the extra money you earn directly into your debt, you’ll see how much you owe go down quickly.

What Are The Benefits Of Debt?

Our failure to practice delayed gratification is what got us into so much debt in the first place. Well, this is about not living below our means. You should not rush to buy everything you want to buy. Take the time to consider your purchase before making it. Learn how to save for things you want to buy instead of buying them now and deal with the consequences of impulse buying later. Take the time to understand the difference between what you really want and what you buy now because you feel you can afford it.

When I was young, my mother always said, “Don’t relax too much. You don’t have to go where you’re told to go, you have to go.” As a child I thought she was the ultimate killjoy and didn’t want me to live and enjoy life. But now I understand exactly what she meant, and it makes a lot of sense now.

“It’s important to know when to say ‘no.’ You don’t have to go wherever you’re invited. If it’s not in your budget and you’re not planning or preparing to spend that money, don’t. It’s important to know when to say ‘no’.” Don’t let money make you plan, don’t feel pressured to spend money you don’t want to, try to count the costs before making any financial commitments, stay focused on your goals to be debt free and don’t let anyone hurt you in the process.

I’m not saying you shouldn’t enjoy life. Be sure to enjoy it. But achieving your debt-free goal doesn’t come at a cost. If it doesn’t fit your budget, say no and move on.

Simple Ways To Get Out Of Debt Quickly Even With A Lower Income

Save whatever money you save. Or, if you want to become debt free, invest the money you save in paying off your debt. For example, let’s say you were going to the store to buy a magazine on your way home from work, but you changed your mind at the last minute and didn’t buy it. The money that would have been used to buy newspapers was used to pay off debts. You’ll soon run out of money, so use it to pay off debt instead.

These were the seven things we did on our debt-free journey that helped us become debt-free in two years. I hope you also find this helpful and useful in your financial journey.

If you are currently living a debt-free life, what have you tried to do to help you along the way?

If you liked our post ‘7 Ways to Get Out of Debt Fast’, you might also like our other blog posts on similar topics. Check it out below:

The Easiest Way To Get Out Of Debt (even On A Low Income)

I’m a money coach and content writer with a passion for helping women break the paycheck-to-paycheck cycle and achieve their financial goals through the power of intentional budgeting, saving and investing, and lateral development. When I’m not talking about money, you can find me spending time with three sexy men.

Tolu Frimpong does not provide financial advice. All information on this website is provided for educational and reference purposes only. Your use of this website is entirely at your own risk. You should always do your own research and get specific, professional financial advice. You can read the most popular questions and answers related to this topic here! If you have any other questions that you want answered, you can contact our team directly!

2) Use a debt settlement loan or some form of financing to pay off your debt all at once.

Option 1 is the most common and easiest method.

Ways To Get Out Of Debt Faster

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