More top tips for reducing your debt

  1. Budget, budget, budget – draw up a monthly budget listing your income and all your expenditure (including putting money away in a savings account should you have to pay for any unforeseen circumstances) and see what’s left over.  That’s the amount you have for spending each month.
  2. Keep a spending diary – not sure how you got yourself into debt in the first place?  Keep a track of what you spend each day and analyse it at the end of the week – do you really need your shop bought coffee every morning?  Are you using your gym membership? Are there spending habits you could avoid?
  3. Leave your plastic at home – when out shopping, it’s far too easy to buy on impulse with that piece of plastic in your wallet.  If it’s not there, you’re more likely to stop and think about whether you really need it.
  4. Consolidate your debts – it may be worth considering consolidating your debts into one manageable loan which may have a lower rate than some of the interest rates you’re paying on all your separate debts.  However, some lenders may ask for your home as security and you could end up paying more interest in the long term so think carefully about whether this option is for you.
  5. Finally – don’t give up!  However hard it may seem, just think how much happier and fulfilled your life will be without debt worries.

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