How to get out of debt: spending less

Getting rid of debts through spending less

13:38 23 January 2014

A typical British household now owes an average of £54,000. This is not surprising as so many continue to be buried deeper in debts as their income can hardly cope with the monthly payments for utilities, house rental or mortgage, food, transportation or petrol and clothing.  Most will feel that this situation can be depressing which could lead them to borrowing money just to enjoy life a little. 

 

See if you can cut on the expenses for the following:

Mortgage or rent

Relocating may not be a welcome option for most because of the difficulty it involves.  However, if moving to cheaper house can make a lot of difference in the budget, then this should definitely be considered.  It is always a good idea to keep personal belongings light and at a minimum level until such time that you have bought your own home where you expect to settle permanently.  Check out how much you will spend for transportation, time for travel, or energy bills to see that the savings realised from mortgage or loan will not be eaten up by expenses contingent to the move.

Utilities

Check out other utility providers who could be offering lower cost for electricity, phone or internet.  Any amount that can be saved from these expenses can amount to hundreds of pounds savings annually. See if there are approved grants that aim to enhance use of energy more efficiently and apply them.

Allot a certain budget for personal luxury

Even on an all out thrift campaign, you should still allot a small budget for personal spending without feeling remorse after.  The more you feel deprived, the more you will have a tendency to splurge just to get slake the feeling of certain lack.  With all the hard work you have done cutting expenses, you are certainly entitled to a little self-indulgence to make it all worthwhile.