Table of contents:
Ways To Get Out Of Debt And Save Money – This blog explains 7 ways to get out of debt fast. These are the seven things my husband and I did to pay ourselves 36,000 in 2 years.
A report by the Trades Union Congress (TUC) states that the average UK home loan, excluding mortgages, is 15,385. This report was done in 2018, based on what happened in 2020, I believe the numbers are even higher now in 2020.
Ways To Get Out Of Debt And Save Money
With over 8.3 million people in the UK in debt, it’s never been more important to talk about money and offer solutions to help people tackle their debt.
Tips On How To Find More Money For Your Savings Pot
That’s why in this blog post I’m going to share seven things my husband and I did to pay off over 36,000 in debt in 2 years. It wasn’t easy and it definitely took a lot of blood, sweat and tears. However, if you are willing to commit to the process, you too will be able to achieve freedom from debt and achieve all of your future goals.
When we got tired of being in debt and not having enough money to pay the bills, we finally had to admit we had a problem. We dug ourselves into a deep hole and it was our responsibility to get out. Face your sin, stop running and hiding from your circumstances. Don’t bury your head in the sand. Make a list of the different debts you have to pay and add them all up.
This step was very difficult for us, we knew we had a lot of debt but we didn’t know it was worth 36,000 million. Seeing these numbers on the payment page was the nudge we needed to motivate us to commit to debt.
Once you’ve identified 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. Thus, income minus expenses is zero. You should know exactly how much you have in and out of your account each month in different budget categories, this will prevent money from slipping through your fingers.
How To Pay Off Credit Card Debt
If you don’t have a budget and don’t know where to start with a budget, I would recommend downloading zero budget for free. However, if you need more help, sign up to call a financial coach and I’ll be happy to help you get your budget up and running for you.
Once you’ve created your budget and have a clear picture of where all your money is going, the next step is to find ways to streamline your spending. Review all the categories you use and find ways to save in each category.
There are some categories that are fixed, so there is nothing you can do to reduce them. However, there are other expenses that are more flexible and by making a few lifestyle changes you will be able to reduce them and free up money to pay off debt.
For example, when we first created our budget and started looking for ways to cut our expenses, one of the categories we maxed out was our grocery budget. I went from buying groceries online from Tesco to shopping at Aldi and the supermarket and managed to reduce my food spend from 300 a month to 200. Another way we managed to save money was let’s stop paying the monthly subscriptions and set up. a lower fee for fun money.
How To Save Money And Get Out Of Debt
By making these cuts with our budget, we had more money left over each month to pay off our debt.
Once you’ve narrowed down your spending, calculate exactly how much you can afford to pay off your debt each month and create your debt-free date.
For example, if your total debt is £10,000 and you’ve managed to release £175 of your monthly income towards your debt, you can calculate your debt-free date:
£10,000 / £175 = 57.14 months or in other words – 4 years and 9 months until you are debt free.
How To Get Out Of Debt Financing
If it can take you up to 5 years to pay off a £10,000 debt, you don’t even need to take this step. However, if you want to get out of debt fast, you need to find ways to increase your income.
One of the things we did when we were trying to pay off the debt was rush it. We sold things around the house that we no longer use. I was doing hair for friends and family, my husband was working overtime at work and doing freelance work. Be creative and think of different ways to earn extra money. Any extra money you earn goes directly to the debt.
Whether it’s freelancing, working overtime, selling items, or researching websites, find ways to earn extra money to pay off your debt.
It can be tempting when you start getting this extra income that you want to use but don’t. Commit to investing your hard-earned money toward debt and you’ll see your debt count drop quickly.
Steps For Paying Off Credit Card Debt In One Year
Not being able to exercise delayed gratification because we put on so much beforehand. It is good that, and do not live below our means. Not everything you want to buy has to be bought voluntarily. Take the time to review your purchase before making a purchase. Learn how to save for the things you want to buy instead of buying now and dealing with the consequences of the purchase later. Take the time to understand the difference between the things you really want and the things you buy now because you feel you have the money to do so.
When I was a child, my mother used to tell me: “Don’t be too visible, not wherever I tell you to go, you have to go.” As a child, I thought I was the ultimate criminal and I didn’t want to have fun and enjoy my life. But now I understand what he meant, it makes a lot of sense now.
“It’s important to know when to say no.” You don’t have to go wherever you are invited. If it’s not in your budget and you haven’t planned and budgeted for it, don’t do it. Don’t let others manage your finances or pressure you into spending money you don’t make. Calculate the cost before you make money. Focus on your debt-free goal and don’t let anyone stand in your way.
I’m not saying don’t enjoy your life, as much as possible, do it. But that’s not the cost of reaching your debt-free goal. If it’s not in your budget, then say no and move on.
Pay Down Debt Vs. Invest
Any money you save, you save. Or when trying to get out of debt, use the money you save to pay off your debt. So, for example, let’s say you headed home from work to the store to buy a newspaper, but changed your mind at the last minute and didn’t buy it. Use the money you used to buy that magazine to pay off your debt. You were going to run out of money anyway, so use it to pay off your debt.
These were the seven things we did on our debt-free journey that helped us become debt-free in two years. I hope you find them useful and help you on your financial journey.
If you’re currently on your debt-free journey, what are some things you’ve tried to help you along the way?
If you enjoyed this post, “7 Ways to Get Out of Debt Fast,” then you’ll enjoy my other blog posts on the topic. See below:
Managing Debt The Right Way
A financial coach and content creator, she is passionate about helping women turn paycheck to paycheck and achieve their financial goals through intentional budgeting, savings and investments, and a healthy career. When I’m not talking about money, you can find me spending time with my 3 loud boys.
Tolu Frimpong does not provide financial advice. All information on this site is for educational and informational purposes only. The use of this site is completely free. You should always do your research and get specific professional advice. Whether it’s snowballing or through other methods, we can help you control, get ahead of the curve and tackle bad debt.
That existing debt means unexpected expenses, such as medical bills, can be the cause of financial problems.
And if you have more monthly payments, you can turn to other financial goals, such as building an emergency fund,
Debt Settlement: Cheapest Way To Get Out Of Debt?
Easy ways to get out of debt, ways to save money and get out of debt, how to get out of debt and save, quick ways to get out of debt, ways to get out of debt faster, fast ways to get out of debt, creative ways to get out of debt, best way to get out of debt and save money, how to get out of debt and save money, save money and get out of debt, best ways to get out of debt, ways to get out of debt
