6 Ways To Reduce Your Debt

Updated: Aug 18, 2021

Paying off debt doesn't have to mean the end of your social life sometimes it's about reducing the number of times you participate in a spending category or finding a less expensive alternative.

If you go out to eat 10x in a month, you can scale it back to 3x and put the difference towards your debt. If dining out costs £100 every time; surely, there are other places you can eat for less and put the difference towards your debt.

It really comes down to one question:

How badly do you want to get out of this unnecessary debt?


We have compiled a list of ways you could potentially use to reduce your debt:

Create a Budget

My favourite word is BUDGET. Don't be alarmed creating a budget is one of the best ways to pay off your debt. Create a budget with the goal of paying off your debt and sticking to it. Budgeting is a simple plan to help you spend your money and maintain your expenses. One of the best ways to take control of your spending is to work off a budget.

Get your own Pennies To Pounds budget spreadsheet here.

Automate Your Payments

Automating minimum payments plus an additional you can afford ensures you will never miss debt payments and accrue a late payment. You can also pay more during the month to lower your balance if you can afford it.

Reduce Your Credit Usage

A Credit Card is not an Emergency Fund - more on that here. Focus on decreasing the use of credit cards so you don't overdo it on your credit usage. Try and keep your credit card debt low enough to make payments in full every month so that you aren't paying interest on past purchases.

Build up your Emergency Account

Building up your emergency account gives you a level of assurance that you won't need to borrow money if and when an emergency arises. Putting money towards your emergency fund while you're paying off your debt keeps the scales balanced.

Live Frugally

Couponing, second-hand clothes shopping, eliminating unwanted memberships and subscriptions, and meal-prepping are just some of the countless ways you can start living frugally to get out of debt. Cutting out expenses where you can is the key to saving money. Think of ways you can start adopting frugal living habits in your daily life.

Make More Money

Getting a part-time job, starting a side hustle or selling some of your own items are just some ideas to earn more money. Research some money-making opportunities to find the best fit for your situation, then take the extra money you earn and put it towards your debt. If you can find something that you really like to do or seem to be much better at than most other people, then you may have the potential to do well in that area and enjoy yourself at the same time, it's a win-win!

If you're in need of additional help, there are free and confidential services that can help you to manage and repay your debts:

National Debt Helpline




Citizen's Advice



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