Step 4: Look for a better deal

Remember setting up a budget in Step 1? Did you take time to look out for expences where you could save money - in order to have more money to pay back your debts?

If not - now would be a good time to start! Why? Because if you are serious about getting out of debt - you need to find at least £75 (or equivalent in your currency) - to pay off over and above your minimum payments.

It may sound like a tall order, but never the less it’s achievable! I’m not only suggesting that you try to cut back on spending money - which is the obvious thing to do - but also, I want to encourage you to make sure you are getting the best deal on what you buy.

Here in the UK - some people can save up to £10 a month just for switching to another energy supplier. This can be done in half an hour. Other areas could be:

Your phone (line rental and use)
Insurance (home, car)
Utilities
YOUR DEBTS!

The last one is a surprise for some people - but think about it! If you have a storecard with a balance on it charging a typical 25%+ APR, how much would you save transferring it to a loan at 7,9% APR? Or maybe you could even make a balance transfer to a credit card with a promotion of 0% - and try to pay the amount off before the end of the promotional period.

I am going to discuss this in greater detail later on, and will not dwell on it too much now. My aim for the time being is to give you ideas that may save you money here and now.

Try to find ways to pay your debts off faster. Remember - every little helps!

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