5 Steps to Becoming Debt Free

  • 5 Steps to Becoming Debt Free

    5 Create a budget

    Compare your average expenses with your income to help identify what can be cut back and how you can reduce your debt.

    A budget is telling your finances where to go, rather than wondering where they went.- John Maxwell via twitter (opens in same window)

    To stay on top of your accounts, try Lloyds Bank’s Money Manager (opens in same window).

    4 Set a date

    Set a goal to work towards and keep the finish line in sight.

    Most “impossible” goals can be met simply by breaking them down into bite size chunks, writing them down, believing them, and then going full speed ahead as if they were routine.” Don Lancaster, Author.

    3 Consolidate

    Rolling your debt into one loan simplifies your repayments and can give you more control over your finances.

    The biggest advantage of a consolidation loan is that all your debts are in one place, so you only have one interest rate to keep track of, and one payment to make every month.Money Supermarket

    MoneySuperMarket consolidation loan calculator (opens in same window)

    2 Learn to say ‘no’

    Limit unnecessary spending and focus on things that matter most to help you save money faster.

    "Do I need it? Can I afford it? Have I checked if it’s cheaper anywhere else? Martin Lewis, Money Saving Expert.

    Money Saving Expert budgeting tool (opens in same window)

    1 Mark the Milestone

    Improved money management skills will help you plan and save for the future. You could aslo budget for a reward to help incentivise you, and celebrate your financial freedom. 

    "Managing money well opens up new opportunities." - Guy Ridgen, MyBnk financial education charity
    Guy Ridgen quote (opens in same window)

Important legal information

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