Step 2: Control your spending

When fighting your way out of debt - obviously controlling your spending is key - yet it’s less important than having a budget. This is, however, where most people start out.

The problem with doing so, is that not having a budget to stick to, means that most people tend to go back to their old spending habits (little by little). Those spending habits were the exact thing that got them into debt in the first place.

I’m not trying to advocate a frugal lifestyle here, although in some cases that wouldn’t hurt, but I would encourage you to use “common sense”, and question every purchase you make.

Ask yourself - what would happen if I didn’t buy this item? Do I really need it? Is there a chance that I could buy this item for less by doing a bit of shopping around?

You may be surprised how little real value some of the things you used to buy have. You may also be surprised how easily you can do without them.

When trying to eliminate debts - every penny counts - and saving 2 pence is as good as earning 3!

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