How did you get rid of your debt?

Hello Dear Reader,

A coffee a day? Cost - £480 a year! A newspaper a day? Cost - £240 a year!  Meal deal of the day at £3 a day - cost £720 a year! Cut and colour every other  month? Cost - £360 a year. Takeaway for two every Friday night? Cost - £780 a year! Meal out once a month on pay day at £30 a head for a couple - Cost - £720 a year! Total cost of the odds and ends? £2860 a year!!!!!! That was my past and now I'm so very much more content in the knowledge that giving those things up didn't kill me and my life is happy just as it is. We gave up the annual holiday whilst we concentrated on debt repayment and now, debt free can look forward to that tradition again, some time in the future. 

We were able to snow ball our debts but understand, especially from the people who email me that some of you don't know where to start, where to start economising. I know there are people who feel an annual holiday is essential for their emotional well-being although it could be argued that being debt free liberates us from stress. It's a choice people make for themselves. We're happy to cook from scratch, to shop in budget supermarkets and use their value brands, some people feel the need to stick the brands and supermarkets they are comfortable with. Again, it's a choice people have to make for themselves.

However, we live in uncertain times and we never know when those choices might be taken away from us. We never know what the economy holds as household names disappear from the high street and jobs become scarcer we may need to make economies sooner than we think. The following is a guest blog and will be of interest to anyone wanting debt advice, especially if the choice has already been take away from you in circumstances such as job loss. All I know is you will feel as if you have reached a mountain top on the day you pay off your last debt.

Ditching luxuries to ditch debt

Times are hard for many people in the UK at present. Job losses, benefit cuts and rising inflation have all taken their toll on people’s finances and often the only way to keep your head above water is by cutting back on non-essential items.The problem is working out what is a luxury and what is a necessity. Indeed, the term luxury is subjective. What some people believe they simply cannot live without can also be something which another person would never consider owning in the first place.

According to a recent study from life assurance and pensions specialist LV=, the average UK household spent £6,195 on luxuries during 2012 – a rise from £5,850 the year before.Some 23 per cent of those questioned said that they feel that holidays and short breaks are essential for their family, with average annual spending coming out at £3,250. On top of that 17 per cent said that their television subscription is something they cannot live without and 16 per cent said that they would not be prepared to have their hair cut and styled less no matter what happened to their finances.The same percentage were not prepared to sacrifice meals out and 15 per cent said they could not reduce the number of times they visit a bar or pub each week.

"The luxuries that we refuse to cut back on is a good barometer for how we're feeling as a nation,” said Mark Jones, head of protection at LV, “It is clear these lifestyle luxuries are central to many people's happiness and it is no surprise.” But an unwillingness to let go when times get tough can lead to serious financial problems. Of course, in an ideal world we’d all enjoy the luxuries we like but when the need to tighten your belt comes, it is important to make decisions and cut a few things.

If you find yourself in a position where making ends meet looks like being difficult in the near future then it is always a good idea to sit down and go through your finances thoroughly, or even speak to a company like Debt Free Direct.This may sound like a chore but it really doesn’t need to take more than a couple of hours and you’ll be amazed where you can make savings.Indeed, many people pay for things without even realising it. When it comes to buying things like electrical items it is easy to forget about signing up for an extended warranty or repair service and yet the payments will keep coming out of your account each month.


Another area to consider is charitable donations. We all like to do our bit for those less fortunate them ourselves, but when finances get tight that old adage about charity beginning at home rings true. Check you direct debits and if you have money going out each money to charities, ask yourself if you can save this money and contribute in another way, such as making smaller cash donations into charity boxes or giving old and unwanted items to charity shops.

Another good way of saving money is by swapping luxury items for cheaper alternatives. While food is essential for sustaining our lives, buying brand names at heavily marked up prices isn’t. Most supermarkets will offer their own brand products and while the idea of buying these may not appeal to you, the difference in quality is minimal. Indeed, Martin Lewis, founder of MoneySavingExpert.com, has proven numerous times on television that most families cannot tell the difference between branded goods and supermarkets’ own makes once the packaging is taken away.

This shows that, like many things, brand names are often little more than luxuries which can be ditched and the money normally spent on them would be better used elsewhere.

Dearly Beloved and I took plenty of advice when we chose to pay off our personal borrowings before our mortgage and felt that advice paid off. When you're at the beginning of paying off debts,some advice can be a lifeline.

Until tomorrow,

Love Froogs xxxxxxxx