From organising your PPI claims to clearing out your house, there are multiple ways to try and reduce your debt before it’s too late.
Debt is something that none of us wants to face, but many of us do so on a daily basis. Mortgages, credit cards and loans are forms of debt that most of us have. With house prices increasing dramatically, it’s no wonder — in nine London boroughs, house prices have risen over 500% in twenty years.
When debt has reached a certain level, consulting with a debt firm and entering into a debt management plan or IVA may be the only choice. But before you get to that stage, you should do everything possible to boost your income and reduce expenditure. Some of the below tactics have worked to reduce debt significantly and have had a big impact on people’s lives.
1. Clear Your House and Sell Everything You Don’t Need
It’s amazing how much clutter we can end up with. While you might think you need that thing you haven’t used for six months, realistically you can probably live without. There are multiple re-selling websites such as eBay and Facebook Marketplace where you can sell your goods. Car boot sales, although less frequent, can also be valuable to make a bit of extra cash. Remember that every penny counts — if you sell 50 items for a pound a piece, that’s an extra £50 that you didn’t have before. This money can be used to chip away at debt or buy necessities such as food.
2. Claim PPI — Even if You Don’t Think You Had it
By now you’re probably sick of the adverts talking about PPI. But as much as you’ve heard about it, acting upon what you hear and making a claim can make a significant difference to your debt. The average payout for PPI is £1,700 and many people are entitled to more. When you’re in debt, such an amount cannot be understated.
If you find old paperwork with PPI listed, start your claim as soon as possible because the deadline for making a claim is fast approaching. 29th August 2019 is the cut-off date and you don’t want to miss out! Even if you don’t have any paperwork or you already have a debt management plan, you can still make a claim.
Thousands of UK consumers were unaware of their PPI sale, yet have claimed back a considerable amount of money to help clear their debt. Contact a reputable PPI claims company or the bank to start your claim today. If you don’t have the time to make a claim yourself or don’t want the hassle of communicating with the bank, a claims company will handle all communication on your behalf.
3. Cut Back on Unnecessary Subscriptions
7.5 million UK households have a Netflix subscription. The one-month free trial is enough to lure anyone in. You then get attached to TV programmes only available on the platform. At £5.99 a month, you end up spending nearly £80 a year to get your fix. Netflix is only the start of it, too, with Amazon Prime, Audible and others all requiring monthly fees.
While some monthly payments are a necessity, such as your phone, electricity and water, cancelling subscriptions you don’t need is a good way to reduce your expenditure. If you love a good film, grab those old DVDs that we all have lying around the house — often still in the cellophane wrappers! — or borrow new films from your friends. Cancelling unnecessary subscriptions makes a significant difference in the long-run.
4. Cut up Your Credit Card
This might seem extreme, but if you have multiple credit cards, cutting them up means you literally can’t spend any more money. Store cards are good ones to start with as they can deter you from going to those shops and spending in the first place. Often, we use having a store card as an excuse to pop in and make purchases that we don’t actually need.
The interest on a credit card has a huge impact on why people get into such large amounts of debt. Prioritise paying off the cards with the highest interest rates and restrict yourself from spending more on these cards.
If you take the time to contact a PPI Claims company or to review your finances and make necessary cutbacks, it is possible to reduce your debt and become debt-free. The process may be long, but you can get there. This is just a selection of suggestions about how it can be done, but there is help out there if you need it.