Back to the Black: Getting Rid of debt

The Best Ways to Get Rid of Debt

Being in debt is hell for many people. In my own case I worried when my head hit the pillow at night. I had no idea how I was going to get through and that is why I developed the Back to the Black system, it worked for me and can work for you too.

Debt makes you vulnerable. Debt keeps you stuck in one place. Debt happens when you start spending other people’s money. It may be painful but the best thing to do with debt, regardless of how long it takes, is to get rid of it. Then and only then do you get control of your life.

Here are a few ways you can get rid of debt:

Assess the source of the debt

I have talked about this before in earlier blogs but it is worth repeating. The first steps to getting out of debt is working out how you spend your money.  Keep a record of what you buy and see where the debts are coming from.  Are your basic needs (food/housing) taking too much of your income? If this is the case, can you downgrade a little? This will help you pay down the debt and stop building up more debt. Remember you cannot cure this without change. How well do you budget for your expenditures and stick to the budget? All these questions will help you find the source of all your debts.

 

Have the debts consolidated into one

If you have a lot of credit card debt, look for a zero interest card offer and transfer the lot to that card. Now you need to target paying that debt down every month.  It means you have one payment rather than lots and it is better than having someone knock on your door asking for money. Debt consolidation is the first step into systematically paying  down your loan.

Having garage sales and fundraisers

If your debt is not that big, try a garage sale/ selling stuff on Ebay.  Most people have stuff they no longer want and could turn into cash.   Taking action is important, if you want to improve your life and have a debt free life you need to take action today.

Check your spending and kick bad habits

Remember if you are in debt, you have been spending other people’s money. You need to pay them their money back.  If you have been buying more than you need, you can stop. In our case we recently stopped buying all our food at a well known supermarket and have moved to the budget supermarket.  This has saved us £20 per week on the same products. That is £1040 per year.  Just think what you could do with an extra grand a year.

If you smoke cigarettes, give up. never mind the health benefits, think of the benefits to your purse or wallet.  I have just googled cigarette prices in the UK and it costs around 34 to 40p per cigarette.  That is around £7 to £8 for a pack of 20. Let’s go with the lower price, £7. If you smoke 20 per day that is £7 per day or £49 per week or £2555 per year, Just over two and a half grand literally going up in smoke. Just think what you could do with £2500 extra income, you already have it you just need to stop smoking.

So you have it within you to change your life, getting out of debt is a state of mind. If you want to, you can.

4 Comments on "Back to the Black: Getting Rid of debt"

  1. Hi Graham,

    some great tips there.

    It really brings the possible savings home to you when you add it up over a year.

    I am shocked to learn that just changing to a budget supermarket can save over a grand a year without having to give anything up.

    • Hi Mike
      yes it is true, we have saved that much and not had to give up anything. We do watch supermarket prices carefully. Well-known supermarkets creep their prices every week to see what we will tolerate. I like a nice beer on a Saturday evening and we noticed last week that a 4 pack of beer had gone up by 25p in a week. The budget supermarket had the same brand of product, literally the same thing for a £1 less. £52 a year saved just there and I still get a beer.
      The example in the post with cigarettes is something I have used before when I was a teacher. The kids were stunned. It is proactivelymanaging your money
      to your success
      Graham

  2. I really needed to hear this message today Graham. I’ve been struggling for a while now to get rid of some debt I have. It really is a state of mind isn’t it? I waste too much money buying ‘treats’ for the kids to make up for the time I spend working – it’s not really productive for anyone. I’m working harder to get more money to spend on the treats… doesn’t take a rocket scientist to know that that’s the first action of I’m taking today – to stop the insanity here!

    • Hi Karen
      May I suggest that instead of ‘treats’, make an effort to take the kids to the park on say a Saturday. They will love you even more for it and it is free. Take a ball and have a family ball game together.
      Life is to be enjoyed NOT endured
      to your success
      Graham

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