The first thing before anything else, is to know exactly how much debt you have, where it is, and what interest rate you are paying. It would be optimal (or preferable) to consolidate your debt to one place ideally with the lowest possible interest rate.
If it isn’t possible to consolidate your debt, it’s recommended that you start by paying off your debt with the highest interest rate. While you are paying off this debt, make sure to pay all the minimum balances on all the other ones.
Secondly, Work on establishing where you can cut back, you need to take your expenditures more seriously, I love going out for meals with friends, but it all adds up! I don’t just mean cut back on the luxuries, take a look at all aspects of your life. Here’s a few idea’s to get you started:
Cooking – it can be such a pain sometimes, but why not have a look online or in some cookbooks you have lying about for some new inspiration? Try to cut food bills by shopping around. Instead of buying from high end grocery, why not try no name brands. It is a lot cheaper, but still excellent quality. You could reduce your food bills by up to 20%.
The Craftsman – Take on more, do it yourself projects, these can save you a lot more then you think. Just saw an article about this lady who built a house with her kids, built and entire house!!! Now that’s a money saver and the best part is she learned how by looking at Youtube videos!
Night with the Gang – Instead of going out to the pub with friends, why not have a night in with them? It is so much cheaper to buy alcohol bottles than to go out and buy a few drinks. Plus, you don’t have to wait at the bar for ages and you can have proper time with your friends, watching movies or listening to music you actually like!
Finally, things like gas and water bills can be reduced slightly by careful usage of utilities and planning your trips properly, but they aren’t bills you can do away with. Any other subscriptions or direct debits you have that aren’t absolutely necessary, cancel them right away.
While it really is not an easy thing, to start cutting back, you have to realize that your spending got you into this situation and you need to make changes to get yourself out! I hope these tips are useful and help you out when it comes to making your money go further!