Saving Money to Pay Off Debt

Clearing your debt fast involves finding ways to cut costs and reduce your spending so you can use that money to pay off your debts. You can also increase your income and pile the extra earnings into debt.

Since starting on my path to debt freedom I've reduce my outgoings in many areas and spent that money on my debts. Here is what I've done to save money for debt repayments, some of my actions may seem extreme to give up however killing off debt quick requires sacrifice:

·       First make your debt cheaper. Balance Transfer your credit cards to 0% interest free deals. Paying no internet clears your balance faster.

·       Find a better even a small 0.25% rate reduction adds up to massive savings over a long time period. If you don't have a mortgage you could search for a cheaper place to rent. 

·         Switch energy provider to reduce your gas and electricity bills at USwitch.

·       Buy cheaper alternatives where you can and consider second hand products. You'll pay more for top brand names and the latest releases.

·         Avoid restaurants, takeaways, coffee shops and cook at home. Take a packed lunch or bring your own food to work when you can.

·         Cancel the TV subscriptions. I got rid of my Sky TV package, yes I missed it for a while then I adjusted. If cancelling your TV viewing is too much then try cheaper options like NowTV.

·         Shop around for better phone and broadband deals. Sim only deals save on mobile hardware costs.

·         Ditch Amazon Prime if you don't really use it and those other expensive weaknesses that you overspend on like gadgets, video games, clothes.

·         Stop or at least cut down if you drink too much. This will benefit your body and give you extra energy levels.

·         If you smoke then quit. Tobacco is an expensive and an unhealthy habit, quitting will save you a fortune and you'll feel great.

·         If you're not travelling too far or needing to carry heavy loads then walk or cycle to save petrol. It will also help you to keep fit.

·         Do you have a job where you could work from home a few days a week? Ask your employer and if it's possible you'll save on food and petrol costs plus the travel time to work.

Doing all or most of these will help you eliminate debt faster. I also opened a debt savings account where money is saved and then paid into my debt.