According to Aviva the average household debt in the UK is now around £13,000. If you were to pay back £100 a month (with a modest 6% interest), it would take you around 17 years to clear the debt!
This doesn’t need to be the case, there are plenty of ways you can cut your spending and clear your debt in no time at all, here are some of the best tips:
Cut the cost of your bills
The average gas and electricity bills now come into about £1,500 a year, which is a huge amount of money. If you have never switched before, now is the time to do it. Taking the time to switch energy suppliers could save you more than £300 a year, which is a huge amount of money that can go towards paying off any debts. Find out how to switch here.
Make shopping lists
Don’t make the mistake of going shopping without knowing exactly what you need. Before you go grocery shopping check your cupboards for what you are running low on, look at your meal plan for the upcoming week and jot down all the ingredients you need to make it. Be alert when you are in the supermarket too, they are designed to get you to spend more money on things you either don’t need or won’t use. You can save yourself up to £500 a year though not chucking out unused or off food.
Want to go away on holiday? They cheapest way to travel is to book early. Even though you hear of last minute bargains, they can be few and far between, and you have to be extremely flexible about where and when you go, so no good if you have a place you want to visit. Use comparison sites like Skyscanner and Kayak to check for the cheapest flights and hotel deals on your dates.
Cut your travel costs right down
Think about your commute, how much is it costing you? London commuters can be paying more than £4000 a year for their travel to and from work. If it’s possible, think about jumping on your bike – depending on where you live you may find that it’s actually faster than getting public transport (especially if you are used to delayed or cancelled trains!)
Get a Monese account!
Make sure you never lose track of your spending by using a Monese account. When you sign up via the Monese app you receive a UK sort code and account number, which your employer uses to pay you, direct into your Monese account. You can also send and receive money in real-time, no waiting. You can make currency transfers for only 0.5% above the mid-market rate; which is one of the best rates available. Using our app you can also make payments, check your up-to-date balance, review your transactions, get paid to invite friends – plus much more!