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For some people simply making a few changes in their lifestyle, such as cutting back the morning take away coffee can help them tackle or stay away from debt.

Here are our tips on how to keep yourself out of debt:

Pay off any debts that you can

It might be easy to leave bills unopened but ignoring what can be a stressful future problem can be the quickest way to put yourself in debt. So, sit down, work out how much you own and start by getting the hardest thing done first.

Start using your savings to pay off your borrowed money, this step could save you hundreds of pounds in interest charges. Rates available on savings accounts are usually significantly lower than the average interest rate on a credit card.

Plan ahead

We know life can become hectic sometimes and planning your finances might be the last thing you want to do, but this step could save you a lot of money and keep you out of debt.

Start by creating a list of all your credit card, store card, overdraft, loan and mortgage. Check how much you might owe on each deal and what you’re currently paying each month.

Then, list all your debts in a piece of paper and decide which debts you need to prioritise. For example, debts that carry the hardest penalties should be dealt with as soon as possible.

Budget and prepare for Christmas

It might seem early but now is the right time to start preparing for Christmas. There is huge pressure on families and couples at Christmas and it’s important not to be lured into excessive debt for just Christmas presents.

The end of summer months is the perfect time to start planning for Christmas, Summer sales are on and gifts are better priced. Check your bank balance, work out what you can afford and stick to the budget.

By preparing for Christmas from now you can avoid unplanned overdrafts and short-term ‘payday’ loans that can quickly become expensive. We understand you will want to spoil your family and friends with lavish gifts but if you are honest and explain to them from early on that you are trying to be careful, we are sure they will be sympathetic.

Create a household budget plan

A household budget plan will help you summarise your earnings and your spending. Take some time and gather all the information you will need such as bank statements, savings and bills.  Add up your income and calculate the average from the last three months.

This plan will help you have a clear idea of where your cash is going and where you can make some changes to save some money. Stick to the plan every month and set savings targets and spending budgets.

Get help!

If you try the above steps and still find it difficult to keep yourself out of debt then please get some help. Talk to your family and consider having an initial free chat with one of our experienced advisors.


The DMA Law team provides debt recovery solutions based on your individual needs. Our lawyers will recommend the best plan for debt recovery to suit you and help you at every stage on the process.