If you don't get into debt you have nothing to get out of. Obvious really, but avoiding debt is so hard to do nowadays. Temptation and special offers are everywhere. But apart from wearing blinkers, earmuffs and living a life as a recluse, what practical tips for avoiding debt altogether are there? Some of these tips below are enough to provide practical ways to get out of debt as well as avoid it.

 

The Internet to the Rescue

The internet is full of handy sites that help you cut costs, with people behind these sites almost becoming real life heroes in this field.

 

Money Saving Expert's

Probably the best known is Martin Lewis's exceptional website www.moneysavingexpert.com who's drive and personality have created a website that is full of hints and tips and little known secrets and earlybird details on how to save and reclaim lots of money.

 

There are more corporate style sites such as these below:

uswitch.com - originally compared utility bills to make sure you have the cheapest supplier but now into other sectors too.

moneysupermarket.com - everything to do with money like insurance, credit cards, mortgages

travelsupermarket.com - save money on holidays

lastminute.com - another well known place to get last minute holiday deals

 

Spending Cuts

Cutting spending is like stopping smoking without a patch but it can be done.

Think....do I really need it?

Think....can I get by with a cheaper version?

Think....could I borrow it instead?

Think....for 5 minutes and then come back to whatever is. Quite often the mind takes a while to process reason above emotion and you'll no longer see the product in the same light. It works.

 

Beat the Billionaires

You are so easy to manipulate. We all are. We'll buy air if it's packaged right!

But It's possible to save 10%, 20% even up to 30% off your grocery bill just by being a little more choosey. Just try this for 1 week and you can beat the multi-million pound research and sales tactics the supermarkets employ.

• Eat before you do the shop - if you are hungry everything is a temptation and you can't concentrate. You need your wits about you.
• Set aside at least an hour - even two - to do the shop. If you rush, you'll buy anything.
• Make a list of what you need and what you've got. It's the oldest and most effective tip.
• If you've got family, leave them at home, they can't influence or distract you which means you can spend time looking to buy bargains not a trolley full of turkeys (unless they're on offer!)
• Set an alarm on your mobile half an hour into the shop with a motivational message like "I'm not going to fall for these sales tricks"
• Eye level is high profit = high cost. Look high and low. It's an old saying but it's true. The better bargains are not at eye level because you need to stretch up or bend down.
• Read the label. Read the label. Yes read the label, twice. A leading supermarket sticks big labels on shelf edge that actually means the price is not a bargain at all, but we don't read the label - we just assume it is a bargain.

 

Know your limits

Don't try to keep up with the Jones if you can't. There are no prizes for getting into debt to impress friends or family.

 

Know the signs

Not in debt but no money left over at the end of the month? This is the earliest warning sign that maybe a little change made now will prevent years of hardship ahead.

 

 

Additional Reading:

Debt Danger Signs