According to an article in the Daily Telegraph on the 13th April 2008, international accountancy firm PricewaterhouseCoopers claims that "The average adult now owes £33,000 through mortgages, credit cards and personal loans compared with £17,000 in 2000."
Being able to cut debt is sometimes a case of not being able to see the wood for the trees. However, doing a few of the things below can substantially improve your quality of life.
Reduce Living Costs Tips 1: Credit Card Debt
If credit card debt presents a problem it is advisable to try and reduce this through making more than the minimum payment each month. If you owe £2500 at 17.9% it will take 91 months to pay off at £50 per month. Pay £100 per month and it will be paid off in 32 months.
If you have good credit, transfer your balance to a new credit card to enjoy an interest-free period of up to 12 months. If you had a £5000 balance at 18% APR this could potentially save you £900 per year. Use this money to reduce your debt and don't just spend it.
Reduce Living Costs Tips 2: Don't Leave Money in Low Interest Current Accounts
If you have any savings, use these to settle your loans and credit cards as it is far better to pay off a debt which costs you 17.9% APR than to earn 0.1% in your current account. Not only that, it will reduce your outgoings substantially.
Reduce Living Costs Tips 3: When Did You Last Remortgage?
When taking out a mortgage, a discounted introductory rate is offered which later changes to a higher Standard Variable Rate (SVR). Unless bad credit presents a problem, getting a remortgage can save you hundreds of pounds each month.
Reduce Living Costs Tips 4: Check that You Have the Best Deal out There
People are paying way over-the-odds for gas, electric and insurance. There are a number of sites that allow you to check to see if you have the best deal. It is surprising how much a simple switch can save each month.
Reduce Living Costs Tips 5: Don't Buy Designer Clothes as Soon as They Are Available
Designer clothes are a very expensive outgoing, but one we can live without. The reality is that we don't need to provided we are prepared to wait a while before parting with any cash. Instead of paying £100 for a new jumper, why not spend a day at a designer village and enjoy discounts of up to 70%?
Reduce Living Costs Tips 6: Take Advantage of Special Offers
When doing your shopping, take advantage of 2 items for the price of 1 deals. Many foods last for ages so stocking up on cereal, deodrants and tooth paste can save you quite a bit in the long run. Always check the discount section as you can literally pick up short shelf life foods for pennies.
Whilst it is always easier to save money than to make it, it is worth investigating other ways of boosting your income.
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