Ideas to help clear debts?

[Songbird232018]

Hi, so have been a bit silly lately and racked up £1000 on a catalogue and now have a £3000 balance on credit card with a £2500 overdraft. I know it's not horrific but I would still very much like to plan to clear them. Any tips?

Well, whilst I might be accused of stating the obvious - first step is to stop buying things that aren't absolutely 100% necessary.

Then, find out which is charging you the most interest, and pay that one down first.

You need to sit down and work out exactly where your money goes each month, and see if you can either
a) earn something extra - maybe sell some things or, more realistically, get a 2nd job one or two evenings a week to increas your income
or (or preferably and)
b) spend less!

Without knowing where your money is going, then it is difficult for anyone to advise but good things to start looking at are

• check you are paying as little as you can for all your utilities, and insurances
• check you aren't paying out for things you don't really use or get value for money for (often quoted is membership of a gym)
• easy 'saves' if you buy lunch out or buy coffees out, is not to! Take aways also cost more than most of us lie to admit.

Do a cash flow plan, what you will spend money on in the month ahead. First item is how much you will pay towards debt, the more the better.

Catalogue - is that on BNPL? If so then read the terms very well and make sure the amount you are paying towards it will clear it by the end of the BNPL period.

Obviously you need to increase income and decrease expenses. Meal planning can help to reduce food costs, make the most out of what is in season.