5. Reducing your spending:
Reviewing your outgoings and reigning in your spending could help you save up enough money to pay back your debts. Any savings you can make now will have a long-term benefit on keeping your financial health and credit score in a good place.
Compare your bills and switch
To save money quickly, shop around to find the best deal on:
- Gas and electricity
- Broadband, phone and TV plans
By shopping around and switching energy provider, you could save hundreds each year. Many people get comfortable with their current provider and don’t realise how easy it is to switch, or how much they could save by moving.
Take a look at our bill-busting guide to see where you could make cutbacks on your bills.
Cut back on non-essential expenditure
Being firm with your spending can help you save a lot of money. When it comes to socialising and entertainment, you will not be expected to give this up completely, but you may want to consider how cutting back can help you pay off debt in the long run.
If you have signed up to subscription or streaming services, it may be worth cutting back on these if you feel you aren’t using them that much. Services like Freeview can offer over 70 live UK TV and radio channels for free, so long as you buy a box to stream these or have a compatible TV.
If your car is expensive to run and maintain, you may want to consider selling or trading it in for a cheaper model and putting any remaining cash towards your debts. It may be worth exploring public transport options to see if your commute can be more affordable or cycling/walking if suitable to your circumstances.
Cancel any Continuous Payment Authorities (CPAs)
If you are making payments via a Continuous Payment Authority whilst struggling with debt, you should seek to cancel these.
A CPA is a type of recurring payment – similar to a direct debit – where you give permission for a company (such as a payday loan lender, magazine subscription or gym membership) to take money from your account on a regular basis. The CPA gives the company permission to take payments whenever they want and take payments for different amounts, without consulting you beforehand.
It is your right to cancel a CPA directly with your card issuer if you are struggling financially. To do so, choose one of the following options:
- Contact the company taking the payment and ask them to stop
- Contact your card issuer/bank and cancel – they must do so immediately
Use our template email to get in touch with your bank. It’s recommended you let the creditor know that you are withdrawing your Continuous Payment Authority but to let your bank know as a priority to stop the payments going out.
Be smart with everyday shopping
If you shop around for your groceries, you could save a fair chunk of money. Look online for new customer offers and vouchers that could help ease your spending and try supermarket own-brand products and see if you notice the difference in your meals.
By bulk buying the everyday foods (rice, pasta and tinned goods) and keeping an eye out for multibuy offers or reduced items, you could save a lot in the long run by batch cooking and freezing meals. By preparing meals in advance, you can also save money on buying lunch at work which could save you around £1,300 a year.
Also, have you tried the ‘Too Good to Go’ App? This lists all of the supermarkets in your area that have put together bags of food that is near its use-by date but is too good to throw away – you could pick a selection of groceries up from as little as £3! Download now from the App store on iPhone or Google Play on Android.