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You've cut down your spending, slashed your credit card rates. Let's make life easier by using the tools that your bank has given you. This system will make your life 100 times easier allowing you to keep track of your money.
Make sure your bills come out on the same day every month.
Phone your providers and get them to set a date where your bill comes out on one day every month. Try and make all of your bills come out on that same day just after you have been paid. Make sure you set up a direct debit and it will come out of your account easily and automatically. This will let you glance at your account and know exactly how much you have left.
Have an account for your bills and an account for your spending.
Your bills have came out and your bill account is sitting at a lovely round £0. You know that there is nothing else to come out. No worrying or fretting or transferring money. Everything is great. You now have money in your spending account and you know exactly how much is in it.
Set up a savings account with ANOTHER bank.
You've cut your credit card rates and cut down on your spending. Take what you have saved and set up a standing order to transfer that money into your emergency fund account. Make sure the standing order comes out on the same day your bills have been paid. You will soon forget that this money is being saved and you will be thankful that you have it there for when there is an emergency.
You could save £1000’s of pounds in less than 30 minutes with a few calls.
It is that simple.
If you have credit outstanding on several cards you will want to check if you are paying any interest on the balance. You can do this by calling your credit card provider and ask what rate you are on currently and if there are any rate changes due.
The first option to check would be to see if you can get a 0% balance transfer to another provider.
This will let you move a balance from one provider to another and cut the interest rate to 0% for a certain period of time. Some providers may charge a balance transfer fee. This fee is normally a percentage of the balance. An example would be a 3.5% balance transfer fee. Eg, The amount of £70 would be added on as a fee to the £2000 that you moved from one card to another.
Now if you can’t move to another provider then you should phone your current card provider and ask them to lower your rate. This will take maximum 30 minutes and could potentially save you hundreds, maybe even thousands of pounds worth of interest charges. Pick up that phone and get calling. Be persistent and ask the customer adviser if they can help by cutting interest rates. If they still say no, ask what they can do to help. Also you could ask if there are any 0% balance transfer’s available on your current card. This may allow you to shuffle balances around whilst cutting interest rates.
Your to-do list.
- Can you get a 0% balance transfer?
- If not, phone your providers and get them to lower your rates.
- Can you refinance any loans?
- Is there anything that your provider can do for you? (Always ask how they can help)
Leave a comment if you have done this and tell us how much you have saved.
Once you know how much you have saved we can start saving this so you can pay off your debt quicker!
Note : If you find that you are struggling with your debt and you’re finding it hard to meet minimum payments then you should seek free money advice.
You're excited. You've just bought a new outfit for tonight. You're going to that new restaurant in town that you've heard is a bit pricey. It doesn't matter though because you are free. Gone are the days worrying about what pound is going where. You're feeling good and looking better. Being debt free has changed your life.
First things first, we need to make budgets sexy.
This is when we look at your income and what you spend each month. You can make a list like so;
- Rent - £400
- Electricity - £40
- Council tax - £120
- Credit card 1 - £200
- Credit card 2 - £100
- Loan 1 - £150
- Netflix - £6
- Amazon Prime - £8
- Food - £140
- Travel - £100
Total - £1264
Income - £1300
Disposable income - £36
This is your budget and you need to make sure that it is kept up to date every month. Look down the list and be honest with yourself. Do you really need Netflix and Amazon prime? Can you cut out things you don't need? Do you need to drive to work?
If it is a necessity then keep it.
If not, cut it. Save that money and put it towards paying off your debt.
Go down your list and look at all of the things you could realistically cut out. It can all add up.
Black Friday has zoomed by and Cyber Monday has squeezed the last out of your bank account.
Your credit card seems to be nearing it's limit and you keep paying your loans back but they seem never ending. Do you feel nervous looking at your account? Have you started worrying about money?
Maybe it's time you broke up with your debt.
Let's get started.
- Get a coffee. Get a pen and bit of paper.
- Write down your debt. All of your debt. Everything. Remember, you are taking the first steps to understanding your debt in order to get rid of it. Write down your debt like this.
What? Payment? Balance?
Barclaycard £150 £2000
Santander card £200 £5000
Lloyds Loan £150 £4000
Total £500 £11000
- Accept that you have this debt. You have it and you shouldn't be ashamed that you have it.
- Now that you have accepted it. It's time to pay it off. It's not going to be easy but as long as you are determined then we can get you debt free.
Look at how much you pay out on debt each month. How would your life improve if they payments were finished? Write it down.
To help you with paying off your debt we're going to create a monthly budget. This will help you see where your money is going. Let's get your monthly budget set out so we know what we are dealing with.