Tuesday, 7 October 2014

TEN QUICK STEPS TO PAY OFF DEBT


These are my 10 top steps to pay off debt 

STOP USING CREDIT 

If you keep accruing debt it will be incredibly difficult to pay it off! Go cold turkey and stop using credit. 

MINIMUM REPAYMENTS 

If you have credit card debt aim to pay more than the minimum repayment. Minimum repayments are designed to keep you in debt for longer. Pay something over the minimum repayment - even if it is only £5, anything is better than nothing and eventually those little sums will add up. 

0% BALANCE TRANSFER 

Also if you have credit card debt consider whether a 0% balance transfer is a possibility and whether it is worthwhile. 0% interest is awesome and it is certainly helping expedite my debt repayments but remember there may be a fee and that the 0% period will end eventually. 

LUNCH 

Get organised! Make lunch the night before and stop buying lunch on a daily basis. 

THE LATTE FACTOR

Buy a thermos, coffee grinder and some beans. It is much cheaper than paying £2.75 a day for a coffee. 

CHICKEN

Buy a whole chicken next time you do your food shopping. A whole chicken is circa £5. My partner and I usually get 2 dinners and 2 lunches out of a whole chicken - sometimes a fifth meal and you can boil up the carcass to make chicken stock/soup. 

SELL YOUR STUFF

Ebay, carboot, vintage fair, facebook - choose your poison. Time consuming, yes, but if your debt is from frivolous spending you should make some money back from the crap you bought on credit which can be thrown at your debt. 

BUDGET 

Boring, but budgeting prevents debt and pays it off. 

GET A SECOND JOB 

Or as Americans like to say 'side hustle'

KEEP FOCUSED

We all slip up but get back on the debt free wagon!

Image courtesy of www.freedigitalphotos.net 


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