Best way to save money and pay off debt
Lots of people want to sort out their personal finances. Our money situations can vary but many of us want to get rid of our debt and turn our finances around to start saving more. Debt can be debilitating and hard to actually start clearing off. It also stops you being able to properly start saving. If you feel that your finances are holding you back, there are ways to sort things and get on top of your game. Let’s have a look at the best way to save money and pay off debt.
Focus On Your Debt
The first step into clearing you debt is to actually focus on your debt. Your need to be all in on clearing this. Where is your debt? How much interest is being added to it every week? If you have more than just one debt to pay back, start with the one that has the most interest. This is your debt and you need to see it as something which is stopping you doing what you want to do. What you want to do is to create a savings pot you can actually use in your life. Something that will make life better. Where is your focus right now? It might need realigning. When you focus on the debt and really focus on clearing it, you’re working towards that ultimate goal.
Pay More Than The Minimum
If you are just paying the minimum amount owed each month, you aren’t clearing any debt. You are simply paying to maintain said debt. Even if you can’t clear the whole debt in one go, if you can pay the minimum amount plus a little extra, you are slowly going to start chipping away at your debts. The interest added will lower and you’ll be on the right path to paying it off. You might even look at shifting your debt onto a 0% card. That way, the amount you owe is not going up and up and up. You will have 12 or 24 months (whatever the terms of the 0% interest) to clear as much as you can without more being added. That is definitely a good thing!
Make Lifestyle Changes
We have to be willing to change when looking at the best way to save money and pay off debt. In order to clear debt you might need to make some lifestyle changes. It is so easy to keep telling ourselves lies. See any money you spend as money that could go towards paying off your debt. So question your purchases. Obviously you need to put food on the table but is there a way to reduce the amount you spend at the supermarket? Yes the kids might need new school shoes but can you get cashback on them which will help you down the line? We all love a takeaway coffee on the way to work, but if you make your own at home, you save £3.50 on a latte which can go towards paying your debt and you also save time queuing in a drive through for a hot drink. Try to save water and save money there too!
Remove Card Info From Websites
One of the worst things we can do is save our payment card details on websites. Obviously there is a security issue, however it makes it all too easy to spend on our cards. All you have to do is a couple of clicks on the mouse and you’ve spent some money. If you are a serial online shopper, removing your card details from sites will make it harder to spend. That extra it of time will help you question this potential purchase and you might abandon your basket before you checkout. This is a great addition to our best way to save money and pay off debt ideas.
Leave Your Card At Home
How easy is it to simply tap your contactless card and pay for your stuff? All too easy! It can actually be quite dangerous. It’s all too easy to send money. One of the best ways to stop spending is to simply leave your card at home. If you go out with a handful of cash, you can only spend that amount of money. Some people go even further and actually freeze their cards in Tupperware boxes of water so they can’t use them easily. You can now lower your contactless limit with some banks so you are in control of the amount you can easily beep for. You could lower it so you have time to think about those more expensive purchases. However, don’t forget, even beeping for purchases of less than £10 a few times adds up.
Start To See Saving As A Priority
You need to start looking at saving money as a priority. In order to save money you need to clear your debt. Your debt is holding you back. You know it is. Focus on clearing that debt and then use the techniques you have developed in clearing it, to start transferring money into a savings pot. You could have a certain savings goal to work towards. Perhaps a holiday or university fees for your children. Maybe an extension on your home. Look at clearing your debt and saving money as another bill you need to fund. So often we put our savings at the bottom of the pile. They are important and when you get a handle on them life can be good.
When you have a goal to get to, you will do what it takes to get there. This includes changing your purchase habits and making some sacrifices now in order to have a better financial future down the line. It’s not going to be easy. It’s going to be absolutely tragically difficult at time. However, stay focused and move forward, clearing that wall of debt one brick at a time. Then building your savings up, one brick at a time. So, what is the best way to save money and pay off debt? It’s pretty simple. The best way to save money and pay off debt is to simply start.