Living with debt can take its toll, both mentally and physically. So, how can get you rid of your debt quickly? Here are some ways to reduce the amount of money you owe and save money today.
Can it be consolidated?
If you have a lot of credit accounts open, you might want to look at the amounts that you pay out every month. If you find the juggle getting too much, you could consider consolidating your credit into one account - have an insolvency practitioner assess your situation first. This way you could reduce the amount of interest you pay, and have only one credit payment to make instead of 4 or 5. If you are consolidating onto a credit card then choose a 0% balance transfer deal. If opting for a loan then choose a loan that allows you to make overpayments and receive interest rebates.
Open and unused accounts?
There is a good chance that you have bank accounts that you have forgotten about. Now would be a good idea to chase down those forgotten accounts and shut them down. Use My Lost Account to track down your forgotten about accounts in the UK. If you have any money left in them, you could get a little cheque in the post. Otherwise, it is just healthier for your credit file to shut down and remove all of those forgotten accounts. This in turn can help you get a better deal on any future credit accounts.
Use your savings
It is nice to see that little amount sitting in the savings account, isn’t it? If you are fortunate enough to have a decent amount of money in your savings account, you might want to consider using it to clear your credit accounts. In some circumstances, banks have been known to empty a person's savings accounts to cover a debt. This however, only happens on rare occasions. If your savings aren’t making a pretty penny, but you’re being charged a lot of interest on your debt, then it could be logical to use your savings to clear your debt. It all depends on your personal circumstances though.
Switch your providers
Interest rates on all of our accounts are generally variable. Even fixed rates accounts are only fixed for a set amount of time. Those introductory offers expire, rates slowly creep up, and money doesn’t seem to stretch as much as it used to. Switching your accounts to a better rate can be time consuming but worth it in the long run. If the savings are only a matter of pennies, it might not seem worth your while. However, with a bit of shopping around, you can find savings on anything from your phone bills to your food shopping. You can even save money on your mortgage.
Check out my massive money saving tips section and find some great deals on my UK voucher codes and free money pages to get started on saving money. You can use the money saved to help pay your debt quicker.
Upgrade your tech
This one always seems counterproductive but stay with us for a moment. Upgrading the things in your life can be beneficial in a variety of ways. It is estimated that up to 90% of an incandescent bulb's energy is lost as heat. That can equal a lot of money over the years, especially if your kids don’t appear to know where the off switch is. Switching them out for a LED light bulb instead can help reduce your energy bills. This logic can be applied to using more energy efficient appliances and cars too. When it’s time to replace appliances, for example, spending a little extra on an energy efficient version can be more cost-effective in the long run. There are lots of energy saving features which are eco-friendly and can save you money in the home.
Making little changes today can help you start saving money instantly. Some of these ideas will provide instant results, and others may take a while to really show their benefits. Either way, whatever steps you take to be more mindful about your money will benefit you and your family in the long run.