Seven quick steps to help decimate debt in 2025 including unlocking £630 hidden cash
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IF you overspent at Christmas, rest assured you’re not alone. One in ten of us will still be paying off our festive debts in June, but you don’t have to be among them. Here are seven simple ways to get on top of what you owe. 1. FACE FACTS: Make a brutally honest list of all your debts and monthly repayments.
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Include the items you MUST pay, such as mortgage or rent, utility bills, food and council tax. Finally, work out your income and how much, if anything, you have spare each month to go towards debt repayments. This will show if you need to cut costs further, perhaps by getting your groceries at a discount supermarket like Lidl instead of the bigger chains.
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You can find a free budget template at moneyhelper.org.uk. 2. REIN IN YOUR SPENDING: It can be tempting but buying new things you don’t need will only get you further into the red — or extend your repayment period. Aim to spend not a single penny more than you need to, so ditch daily coffees, nights out and new clothes.
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SAVE: An average of £120. 3. GO FOR ZERO: Credit cards are one of the toughest debts to clear. Making only the minimum payment on a £3,000 debt can take you an incredible 27 YEARS to pay off. Instead, shift your credit card debt to a card with 0 per cent interest and pay off as much as you can each month.
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