Expenditure cuts DIY debt solution

Summary: Expenditure cuts - This paper explores of reducing outgoings so as to channel increased available income towards debt repayments in order to become debt-free quicker.


We often wonder where our money actually goes! A quick reckoning in our head suggests we should be able to meet all bills and still live, but the reality seems different. An exercise in accounting for every penny over a month or 2 can be a sobering exercise. We completely forgot about all the small extras, the car tax that is due 6 or 12 monthly, or the unexpected dental appointment. We need to establish a budget that is realistic and takes into account certain variables.

Establishing priorities

At this point we may need to choose between the luxuries and the debt repayments. A much-needed holiday versus clearing a credit card is a no-brainer for some, but in the long run we may live to regret the holiday, as interest charges continue to increase and the credit card debt increases.

Comparison websites

From car insurance to utility suppliers and from mobile package to supermarket goods, there is money to be saved. Comparison websites can do much of the work for us. Of course we weigh the time taken and inconvenience incurred against the actual savings, but many find they are able to save considerable amounts by switching providers or suppliers.

Clearing debts

Anything we can do to clear debts quicker should be encouraged - especially those debts incurring high interest charges. Minimum payments on credit and store cards may suggest we are keeping up with things and managing our finances well - but the reality is that we may well be paying for your debt many times over. Clearing the debt as a priority and then saving for the luxuries and extras makes much better use of our hard-earned cash.

Being ruthless

Cutting back for a season may benefit us in the long run if it gives us the opportunity to clear debts. Our entertainment budget could be slashed for a period, takeaways, new clothes etc could be put on hold at least for now, in order to make savings to channel towards the debt repayments.


Where possible try to reduce the debt repayment expenses by looking at ways to consolidate debts, or move them around, to avoid the higher interest. Shopping around in all areas of life and finance is usually worthwhile.

The above is provided as information only. Iva.co.uk does not provide debt advice. You must always seek professional advice before taking any action to resolve your debts.