How To Effectively Pay Off Your Credit Quickly & Save!

Advice / Tuesday, October 18th, 2016

Credit cards and store credit seem perfect in the moment but six; seven, eight months down the line when you’re trying to pay everything off quickly so you can focus your money elsewhere, i.e Christmas, they become a pain in the arse.

Paying credit off can be easy to achieve even on a low-income. However, you need to be strict with yourself and change your lifestyle.

I personally LOVE saving money throughout the year as it relieves my anxiety, so these sacrifices come without burden. I fully understand that this may not be the case for everyone, but these tips could help you along your way.

  1. Set up a standing order to go out 5 days before you’re payment due date. This helps you to avoid any late charges due to weekends and bank holidays, as it takes 3 working days to update most company accounts.
  2. The moment you get your pay cheque put at least 5-10% off it away in a piggy bank and try not to touch it. It may seem like a lot when you have nothing, but it gets you in the habit of saving even if you have to use it.
  3. Every month write down a budget and stick to it.
  4. Work with cash. Take out your shopping, travel, personal and food money out in cash as you’ll be less likely to spend money when you can see it.
  5. Any money you have left at the end of the month, whether its £10 or £100 put towards your credit cards. This way your chipping away more than just the interest.
  6. Balance transfer if you have too and get rid of your interest.
  7. Don’t forget about it, its not going away!

For example, if I bring home after tax £1500 my budget would look something like this:

Savings: £150 (I renamed this to my ‘Oh Shit Account’)

House Bills: £750 (based on the average UK price found here)

Food: £100 pp

Gym: £32

Mobile Phones: £50

Travel: £60 (based on two tanks of petrol, or one monthly bus pass)

Personal: £40 (£10 a week for Misc)

That leaves you with £318 to put towards your credit card. Within six months this £318 becomes £1,908 and within a year it becomes £3,816. Not to mention you would have saved £1,800 to do what you bloody well like with.


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