I can’t be the only one who feels better on the days that follow payday. I feel more confident, more secure, and more content. But then the direct debits hit and they hit hard. Clearing your debts helps to prolong the feel good payday feeling.
There isn’t usually one big thing you should do. Getting debt free fast often involves doing many little things well. I’ve put together a list of ideas that can help you to get debt free fast.
1. Consider a debt solution
There are several debt solutions in the UK. Most people have only heard of bankruptcy. There are other solutions that aren’t as drastic and can dramatically improve your finances. Your repayments are based on your income and outgoings which means you’ll have money for the essentials. You may even be allowed to write off some of your debt. Read more about the other solutions:
2. Change your habits
The most crucial aspect to having money at the end of the month is by breaking the habits that got you into debt in the first place. There are many reasons people fall into financial difficulty. For some it’s just a run of bad luck. However, many of you will know the reason you’re having money problems. Whether it’s too many nights out, expensive holidays, or trying hard to keep up with friends. Have a think about what your reasons might be. If you think you know what it is, acknowledge it and actively do something to change.
3. Cook in large batches
I must admit I find this hard. The best way I’ve found is to test different budget recipes until you settle on four or five you really like, It might sound boring but I cook these in large batches. The same recipes each and every week. I only change with the warmer and colder seasons. By doing this I know exactly what I’m going to spend on food every week, making it much easier to budget.
4. Start to freelance
Have you got skills? Then put them to good use. There are many mediums through which you can receive freelance work. The one I’ve used before is Fiverr. It’s a great way of adding to your monthly income and to prolong that payday feeling.
5. Use the snowball method
This is a simple but effective way of dealing with your debts. It works by following these simple steps:
- Make a list of your debts from smallest to largest
- Make minimum payments on all of your debts
- For the smallest debt pay it off as quickly as you can
- Repeat until all your debts are paid in full
6. Make a list of all of your outgoings
Write down all of your outgoings. I know when I did this it helped to put things into perspective. Did I really need to have an iphone? Is having both Amazon Prime and Netflix that necessary? Have a look where you can make cutbacks, even if it’s only by a small amount it can make all the difference.
7. Increase your earning potential
To earn more businesses want to know you have skills that can help them. To learn more skills, Youtube is a great place to start. The only problem I’ve found is that it lacks structure. That’s why I do quite a few courses on Udemy. The courses are usually £10 each. Have a look at the reviews before you purchase.