One thing we have plenty of
now is debt it spiraled out of control with the house renovations sadly, but we
do have plans in place to pay it off as quickly as possible. We have a complicated spreadsheet to keep a
close eye on our incomings and outgoings and any spare cash is immediately
allocated to paying off debt.
We are being firmer with ourselves and spending a lot
less on non-essentials so we can dedicate more funds to clearing the debt as
quickly as possible. Living within our means might
not be particularly exciting, we are trying not to splash out on new purchases,
making what we have last, taking what help we can from friends and family (in
the way of second hand clothes and toys) and even scouring the charity shops
first when we need something. Spending
less means we can commit more money to reducing debt. The quicker we pay it back the less interest charges we will have
paid in the long run.
Additionally we have moved
credit card provider to take advantage of an extended interest free period,
anything to try and minimize the additional interest we are paying. I noticed TSB have 0% for
28 months with one of their balance transfer deals, which seems quite
generous. Then when you make repayments
at least they are actually bringing the debt down not just going towards the
We also make a point of
shopping around to free up more money, we use every voucher code we can find,
look out for sales, head to price comparison sites to see if what we need is
available to buy cheaper elsewhere.
Basically any possible method to get more value for our money, the less
we spend out the more we can dedicate to our debt repayment plan.
I found prioritizing which
debt is paid first has been helpful; we focused on the one with the highest
interest rate (as long as you have no penalty for overpaying this seems the
most sensible solution!). Any extra
funds are immediately targeted that way.
If your finding it hard to free up additional funds try banning the use
of cards, instead have a weekly cash allowance and stick to it!
If circumstances are
particularly dire see what lifestyle adjustments you can make, do you have any
memberships you can cancel (walk more and knock the gym on the head!) or could
you have a smaller car or house. If you
are determined to get out of debt, you will find the motivation to make
It will be such a wonderful feeling when we finally
clear the heavy burden of debt. It’s
very stressful and causes tension between hubbie and myself but I am glad we
are doing everything in our power to get the debt under control and starting to
see some progress.