If your debts are a problem and you are really determined to get out of the debt trap, then there are some adjustments that you can make to your lifestyle to help you move closer to a debt free life.  Here are 6 areas that you could consider when trying to reduce your living costs….. 

1. Home –Look at the cost of running the house you live in.  Are there any cheaper alternatives?  For example, could you look at downsizing to a smaller house?  This would save on your mortgage or rent as well as your utility costs, and you may even make a saving on your Council Tax bill. 

Do you have a spare room?  If so, you could consider renting it out.  You are able to earn up to a yearly maximum of £4250 tax free!

2. Second Income – If you have some free time, could you try working a second job?  This would give some extra money to put toward your debts.    

3. Car – Most of us see our car as a necessity, but is it essential?  The cost of running a car is not just the fuel that you put in it on a weekly basis, it is also insurance, maintenance, servicing, and car tax.  Can you walk, cycle, or car share?  As well as saving money and getting fitter, you would be saving the environment!

If you have 2 cars in the family – could you manage with one car for a while without too much disruption to your family? 

4. Holiday alternatives – We all look forward to getting away in our spare time, but it doesn’t mean you have to spend on a holiday away from home. Consider arranging an activity for each day you have off. These don’t have to cost a lot, look at free museums, picnics in the park, or walks. 

5. Your Lifestyle – Do you pay for a gym membership that you have not used in a while?  Do you use all of your mobile phone allowance?  Do you need the extra sky box that is in the spare bedroom?  All these things add up to extra expense in your budget.  If you are tied to a contract you could always try talking to your supplier and see if you can reduce your monthly payment. 

6. Your Habits- Do you realise that if you smoke just 10 cigarettes per day then you are spending £90 per month on tobacco; that is £1080 per year.  A sandwich and a latte at lunchtime could cost you £5 per day – this would equate to £1296 per year.  Frightening thought! 

Could you consider taking a packed lunch or changing to cheaper tobacco products?

Why not set yourself a challenge?  How much money can you save in your budget by making some changes to your lifestyle?