Clearing Debt As Quickly As Possible

I’ve talked about my experiences with debt before and whilst I am still in some debt (aiming to get rid of it asap), I have managed to clear some. I’m here today to talk about how you too can clear your debt quickly and start living the lifestyle you truly want to lead. I’m not quite there yet but hopefully, following my own tips as I have already been doing, I’ll get there very soon.

Set A Budget

It sounds so simple but setting a budget really does help you to locate where you are going wrong. I know that I could definitely put a little more towards debt if I set a proper budget so that is what I am aiming to do every month – know exactly where every single penny is going. Focus on making sure your four walls are paid for – rent or mortgage and council tax. Then work out the rest of your bills, food, travel/transport and then any expenses that you incur each month but aren’t actually required. We have both Virgin and Netflix – we will be keeping Netflix but cutting Virgin down as much as we can so our budget will be designed to reflect this.

Look Into Other Options

If you’ve already given some of the basic debt free ideas a go and are still struggling, then it might be time to consider other options. Debt can be so crippling and we all aim for financial freedom so there are often other things you can do. I know of people who’ve sold their properties to pay off debt and then bought something new with the remaining funds that is better suited to their budget.

Some people have done this to stop house repossession – their debts were too high to maintain on income alone and they faced losing their home, selling it was their only remaining option. There are companies who will buy houses for cash – the main benefit is that it is a quick sale that reduces estate agency fees. Whilst this option isn’t for everyone, it is useful to know there are other options for those with fairly high debts apart from the usual bankruptcy or IVA options.

Artem Bali
Cut Back On Unnecessary Spending

Further to my point above about setting a budget, it is important to cut back on unnecessary spending. I’ve already mentioned that while we will be keeping Netflix (we use it a lot!), we will be cutting back on our Virgin package as much as we can.

We are also quite far into our phone contracts with Three and have noticed that we are using nowhere near the amount of data – we are going to speak to them to see if we can reduce our package slightly and in turn reduce our bill.

The only other ‘unnecessary’ spending we have is Steve’s golf and darts and going out to eat. We are already reducing the amount we go out to eat and Steve is changing the golf club he is a member at, saving £££ every month.

Increase Your Income

Something I have been trying to do in recent months is increase my income and this has been working well for me. I’ve almost paid all my bills for the month and then have no more bills until the 8th of next month so any payments made to me from today onwards until the 2nd of next month (when all my monthly invoices tend to get paid by) will be getting thrown towards debt.

I have been doing this by offering extras to my existing clients, taking on new clients thanks to word of mouth from my existing clients (my clients are the best), taking on higher paid work on the blog, pitching more on the freelance side of things and generally pushing myself a little more. It is working in my favour and I am starting to see those numbers go down and down.

 

Have you ever been in debt? How did you clear it? Or are you still in debt and aiming to clear it as soon as possible? I’d love to hear your tips about clearing debt as quickly as possible.

This is a collaborative post

7 comments / Add your comment below

  1. Great advice here. It’s so difficult once you get into debt, I know we had issues in our early twenties with struggling to pay back a loan and it felt over whelming at times!

  2. Budgeting seems like such hard work but you can really benefit if you can keep an eye on spending. I need to look at our bills like tv etc again and see if I can save there.

  3. This is really something everyone has to deal with properly. Increasing your income and cutting back on unnecessary spending are definitely good moves.

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