Tips to save money to pay debt off quicker

monnagran

You have started brilliantly. I don't know which of your debts has the highest interest but when you start paying it off why not post on here every month the new amount. It will keep you focussed and we will be so proud of you to see it going down.

B17c

That!!!8217;s a good idea monnagran... is the one with the highest interest rate the one with the highest minimum payment? Eg Aqua minimum amount might be 100 a month but Tesco 50, so aqua has the most interest rate?

frugalmumof3

B17c wrote: »

That!!!8217;s a good idea monnagran... is the one with the highest interest rate the one with the highest minimum payment? Eg Aqua minimum amount might be 100 a month but Tesco 50, so aqua has the most interest rate?

Hi I've just read through your thread and sounds like you have made a great start. Selling on gumtree, facebook etc is great for no fees so every penny goes in your pocket .

We had some debt on Aqua card (emergency car replacement) the interest rates are pretty high and I don't know if you can but what we have done is move the debt to a Virgin card on a 0% for 24 months deal, we then worked out how much we needed to pay each month so that it'll be clear before the 0% deal ends. Most companies offer deals like that from time to time we used the credit page on MSE to find the one we would be most likely accepted for. That way you aren't battling the crippling interest rates all the time. Good luck x
Edited to add another option could be a consolidation loan if you are able to lend, check the best deals out there. Definitely worth a try.

lessonlearned

Some great tips.

I'm Another one here to recommend starting a spending diary. Prepared to be shocked. :rotfl:

Track every single penny you spend. It will be an eye opener. From that you will be able to see where you can make cut backs, how you can stop the leaks and how you can make your money go further.

[Deleted User]

suki1964 wrote: »

Spending diary is a must as far as Im concerned

Its all too easy to have ten pound disappear on mindless spending - a coffee here, pint of milk there, bar of chocolate - !!!!!! - its gone. Nothing to show for it, no idea where it went, and ten pounds not available to pay of debt

Anything you sell, put that money straight into debt payment else that too will get eaten up in every day spends

So true My late Mum always said once you break into a fiver (back in the 1950s ) the change will disappear faster than butter in the frying pan.

I menu plan every Sunday morning for the week and aim to use every bit of fresh food up first that I can so there is no waste , I actually bin almost nothing apart from egg shells and banana skins etc.

I cook from scratch everything I can and if I see something in a supermarket that looks nice I work out how I can make it myself for half the price.

I never eat ready meals or take-aways ,but then I never have and coffee etc I make indoors I don't need to buy it when I am out.To me £3.00 spent on a coffee would buy me at least enough food to make 2-3 meals.

But try doing it with baby steps and you may be
amazed at how much you can save .

The old mantra of Do I want it or need it is good.

Need is necessity, want is not Can I live without it ? ,if you can, then you don't need it

Use only cash to buy food, and write every penny down that you spend and you may be gobsmacked at where you cash is dribbling away to.


You obviously can see that you need to put the brake on your spending so your 'light bulb moment has arrived Good luck and keep hanging on to those pennies

JackieO xx

BillyBills

My advice would be to cut down on food and drink. We all eat way too much. My wife and I started budgeting our weekly shop and saved a bunch every month plus we!!!8217;ve never felt healthier. Cut down your food consumption by half, it!!!8217;s possible!

Sell all your junk, the stats show it!!!8217;s liek £2.5k in unwanted junk in uk households or something like that. I made a grand selling old electronics (my own and friend!!!8217;s for commission). Trust me you!!!8217;ll get out of this situation, you just need to make cuts wherever you can and get crafty with selling things online

monnagran

B17c, I would think that starting to pay off the debt with the highest minimum payment would be a good idea. The sooner you get that one paid off then you will will have that big payment amount to start on the debt with the next highest minimum parment.
I sounds a bit childish but you can also do like churches or other institutions do when they are raising funds......draw a big thermometer showing the whole amount of the first debt you are working on, marked off in £50 chunks, or whatever amount you decide on, and colour in every chunk that you manage to pay off. Imagine the joy of watching great chunks of debt being paid off every month with the extra money you have either earned, raised by selling stuff and the money you have saved by being Miss Scrooge 2018.

When you have finally paid off all the debts, which won't be for a while, you will be so clever at managing your money that all the money you had to use to pay off your debts will be free to start SAVING.

I feel really excited for you.

B17c

Lessonlearned and JackieO, I went through my bank statement online yesterday afternoon and totted up all the non essential spends eg that weren’t bills/DD etc since I got paid in May and I ve spent £270 :eek: on b*gger all!!!!!

All things like little supermarket spends for £2/3/4, maccieDs where I forgot my food for work a few times, a movie on amazon prime... all adds up!

That’s £270 that could have gone on debt, or €€ for when I go home in October for 2 weeks... im annoyed at myself! :mad:

B17c

Monnagran that makes sense to start with the highest amount then I can use that same amount/and the minimum on the next debt coz I wont miss it and itll pay the next off quicker... is that the snowball effect? Or is it avalanche?! Either way!

I love the idea of a visual aid to see my debt going down! Im not artistic lol Ill just draw a grid or something and colour the boxes in!!

Thank you all for the ideas and tips, very helpful! :beer: Xx

B17c

Thanks frugalmumof3! Im not sure my credit score is good enough to open another line of credit but thank you for the tip! My aqua card is the highest rate out of all of mine so thats the one ill start with!