Frugaling

Save more, live well, give generously

  • Home
  • Start Here
  • Popular
    • Archives
  • Recommended
  • Contact
  • Save Money
    • Lifestyle Downgrade
    • Save Money with Mindfulness
    • Save at Starbucks
    • Psychological Trick To Reduce Your Online Shopping
    • Best Freebies
  • Minimalism
    • 8 TED Talks To Become A Minimalist
    • We Rent This Life
    • Everything Must Go
    • Lifestyle Downgrade
    • The Purchase Paradox: Wanting, Until You Own It
    • Nothing In My Pockets
  • Social Justice
    • Destroy The 40-Hour Workweek
    • Too Poor To Protest: Income Inequality
    • The New Rich: How $250k A Year Became Middle Class
    • Hunter Gatherers vs. 21st Century Desk-sitters
  • Make Money
    • Make $10k in 10 Months
    • Monetize Your Blog
    • Side Hustle for Serious Cash
  • Loans
    • 5 Rules To Follow Before Accepting Student Loans
    • Would You Marry Me?
    • Should I Have a Credit Card If I’m In Debt?
    • $50k in Scholarships in 70 Minutes

The Ultimate List of Budgeting Tips to Reduce Debt

By Frugaling 1 Comment

Share This:

shutterstock_243661255

The increase in consumer debt over the past few years, mainly since the recession is staggering. More and more people are finding themselves in a situation where they are battling to cope with their rising debt, with some feeling as though it’s a mountain they just cannot get to the top of, no matter how hard they try which as a result has led to more people within the UK having to use an IVA (Individual Voluntary Arrangement) or Trust Deed to help manage their debts.

Saving monthly, paying the minimum repayment on credit cards and cutting back on things such as travel or eating out – following the guidelines which are published in many magazines and blogs. Feeling like you’re doing the right thing but it just doesn’t seem to be making a difference.

This is why many people are turning to IVAs and Trust Deeds. These can help those individuals and families who are struggling with mounting debt to cope. In the case of an IVA or individual voluntary agreement, creditors will come to an agreement in which the consumer pays all or some of their debts over a period of time.

It’s favourable to bankruptcy as it allows more control over assets. A Trust Deed is also an arrangement where all of a debtor’s assets are transferred to a trustee to manage and pay back the creditors. This will also include paying a regular portion of their income to the trustee to allocate to creditors.

Before choosing to enter into either of these agreements however, try to reduce debt yourself. It IS possible.

Below is the ULTIMATE list of budgeting tips to reduce debt, and following as many of these as possible, will help you to get a lot closer to the top of the proverbial mountain than you have ever been…

Spend less than you earn

This may seem obvious, but many people rely on credit cards to live a lifestyle that costs more than what they earn. Create a realistic budget and stick to it.

Cut up your credit cards

Do this so that you are not tempted to go over your monthly budget.

Pay off credit cards with the highest interest first

Check APR on each card and pay them off from the highest to the lowest.

Implement a weekly meal plan

By planning your meals for both lunches (at work, school or home) and dinners, you will know exactly what to buy. Anything that doesn’t got into one of the recipes, doesn’t need to go into the trolley.

Take your lunch to work

Taking your lunch with you to work can save a substantial amount over time. The same applies to morning coffees.

Look to change your home and car insurances

Insurance companies usually rely on the fact that people will not cancel the automatic renewal each year, but often their prices don’t remain competitive. Use a price comparison website and don’t be afraid to change insurer.

Don’t buy new clothes

There will be times where kids grow out of their clothes and buying new clothing is unavoidable, but the adults most certainly don’t need anything new until after the debt has been paid off.

Downgrade your mobile phone and TV package

It’s an essential part of reducing debt, whether we like it or not. We don’t need the mobile phone package with unlimited minutes or huge amount of data, nor do we need the best TV package with access to the latest box sets. While you are paying off debt, downgrade to the basics.

Track your expenses

Writing down everything you spend or using an app to track can help you to spend less because you are constantly aware of the running total. Put a stop to any monthly subscriptions such as Netflix and Audible. All the small amounts do add up over time.

Put any extra cash towards your debt

Any additional money from overtime or part-time work as well as unexpected cash in the form of a gift or someone paying for you when you had planned to pay yourself, should immediately go to pay off your debts.

Cut back on entertainment

This will only be a temporary measure but will go a long way to decreasing your debts.

Pay a little more than the minimum repayment

Even if it is only £5 extra, always pay something more than the minimum which will bring down the interest you will pay over the course of the debt.

Try implementing just one of each of the above tips per week and within three months you will have built up numerous healthy habits towards reducing your debt.

Share the wealth:

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on Pinterest (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • More
  • Click to share on Pocket (Opens in new window)
  • Click to share on Tumblr (Opens in new window)

Related

Filed Under: Money Tagged With: budgeting

Comments

  1. Adriana @Money Journey says

    March 15, 2017 at 2:02 am

    I love these tips! When we were in deep debt, we learned to follow most of the advice above and boy did that help!

    Thing is, even after becoming debt free, we still follow some of the “money rules” we had back then.

    We got used to not buying new clothes that often, I took my lunch to work every single day at my old job, we switched to a cheaper car insurance to save money (and I still shop around from time to time, if I find an even better deal we’ll switch again).

    Whether you’re in debt or not, it never hurts to follow good money habits on a regular basis 🙂

    Reply

Join the Conversation: Cancel reply

Follow

  • Facebook
  • Google+
  • Pinterest
  • RSS
  • Twitter

Subscribe

Best Of

  • The New Rich: How $250k A Year Became Middle Class
    The New Rich: How $250k A Year Became Middle Class
  • 8 TED Talks That Will Inspire You To Become A Minimalist
    8 TED Talks That Will Inspire You To Become A Minimalist
  • Debt Is The Illusion Of Success
    Debt Is The Illusion Of Success
  • Who Are Your Financial Role Models?
    Who Are Your Financial Role Models?
  • This Statistic On Greed Will Shock You: Have Less? You'll Give More.
    This Statistic On Greed Will Shock You: Have Less? You'll Give More.
  • Is Frozen Juice Cheaper?
    Is Frozen Juice Cheaper?

Recent Posts

  • How to Pay Off Medical Debt
  • 5 Ways to Save Money Before a New Baby
  • 4 Ways to Save Money on Streaming Services
  • 5 Ways to Save Thousands in Mortgage Interest
  • Why Professional Maintenance on Your Vehicle Saves You Money in the Long Run

Search

Archives

  • January 2023 (1)
  • March 2022 (3)
  • February 2022 (2)
  • November 2021 (1)
  • October 2021 (2)
  • August 2021 (4)
  • July 2021 (5)
  • June 2021 (3)
  • May 2021 (2)
  • January 2021 (2)
  • December 2020 (2)
  • October 2020 (2)
  • September 2020 (1)
  • August 2020 (3)
  • June 2020 (1)
  • May 2020 (2)
  • April 2020 (1)
  • February 2020 (2)
  • January 2020 (1)
  • December 2019 (1)
  • November 2019 (5)
  • September 2019 (4)
  • August 2019 (1)
  • June 2019 (1)
  • May 2019 (1)
  • April 2019 (1)
  • March 2019 (3)
  • February 2019 (1)
  • January 2019 (3)
  • December 2018 (1)
  • September 2018 (2)
  • July 2018 (1)
  • June 2018 (2)
  • May 2018 (1)
  • April 2018 (5)
  • March 2018 (6)
  • February 2018 (4)
  • January 2018 (1)
  • December 2017 (10)
  • November 2017 (3)
  • July 2017 (2)
  • June 2017 (5)
  • May 2017 (2)
  • April 2017 (8)
  • March 2017 (4)
  • February 2017 (3)
  • January 2017 (2)
  • December 2016 (2)
  • November 2016 (4)
  • October 2016 (2)
  • September 2016 (1)
  • August 2016 (4)
  • July 2016 (1)
  • June 2016 (3)
  • May 2016 (3)
  • April 2016 (4)
  • March 2016 (5)
  • February 2016 (2)
  • January 2016 (2)
  • December 2015 (3)
  • November 2015 (5)
  • October 2015 (5)
  • September 2015 (4)
  • August 2015 (6)
  • July 2015 (8)
  • June 2015 (6)
  • May 2015 (14)
  • April 2015 (14)
  • March 2015 (13)
  • February 2015 (12)
  • January 2015 (15)
  • December 2014 (10)
  • November 2014 (5)
  • October 2014 (6)
  • September 2014 (7)
  • August 2014 (12)
  • July 2014 (11)
  • June 2014 (12)
  • May 2014 (16)
  • April 2014 (13)
  • March 2014 (13)
  • February 2014 (9)
  • January 2014 (20)
  • December 2013 (9)
  • November 2013 (18)
  • October 2013 (15)
  • September 2013 (11)
  • August 2013 (11)
  • July 2013 (27)
  • June 2013 (18)
  • May 2013 (16)

Best Of

  • The New Rich: How $250k A Year Became Middle Class
  • 8 TED Talks That Will Inspire You To Become A Minimalist
  • Debt Is The Illusion Of Success

Recent Posts

  • How to Pay Off Medical Debt
  • 5 Ways to Save Money Before a New Baby
  • 4 Ways to Save Money on Streaming Services

Follow

  • Facebook
  • Google+
  • RSS
  • Twitter

Copyright © 2023 · Modern Studio Pro Theme on Genesis Framework · WordPress · Log in