Get debt down and saving back on track

Many of us are getting settled back into work after relaxing summer holidays away. But when your bank statements start arriving at the end of the month, you might find your summer of fun has left you with a dumb debt hangover.

But don’t fret, you can banish holiday debt fast and get your savings back on track by following a few simple useful tips.

It may sound obvious, but if you want to reduce debt - stop adding to it. This can be easier said than done, especially with tempting summer sales and the feeling you need to start the New Year with new things. Think carefully before you take out your credit card and if you’re having trouble resisting temptation, ask your bank to reduce your credit limit.

Prioritise paying back high interest debt first, like hire purchase or credit card debt. These will rack up high amounts of interest once the interest-free period is up. Don’t be fooled into thinking it’s okay to only pay off the minimum on your credit card. If you don’t pay off the full balance when your statement is due, the debt will start increasing.

The start of the year is a great time to make a spending plan. Review your income and expenses and look for areas where you can cut back spending, and put these savings towards paying back debt. For example, you might want to pack picnic lunches to enjoy the summer weather, rather than dining out. Or cut down on other daily expenses.

Once you’ve paid off your debts, you can start putting that extra money towards growing your savings.

Start the new year on the right foot, by clearing your dumb debt from the summer holidays as fast as possible and getting your savings on track.