NEW YEAR’S RESOLUTIONS: HOW TO BE DEBT FREE IN 2022

Starting in January, you can put in place many money management resolutions to make a difference for the year. At Everyday Loans, we have come up with our eight top tips to help you be debt-free in 2022.

1. Pick a bill

Millions of us have lapsed from our initial enticing offer rates and onto the standard for lots of different bills – whether that’s electricity or gas, TV or the gym. So, pick one bill each month and work out how you cut the cost.

It’s often as simple as calling your current provider and asking for its best rate, or spend a little more time researching other providers to see which is cheapest and switching to save more. Either way, you’ll end the year better off.

2. Have a healthy savings account

One in eight of us UK adults have no cash savings at all. A further third have savings of between £1 and £1,999. This suggests that lots of us would struggle in the event of an unexpected cost.

By making an effort to put away a few pounds each week or month, you can start to see the money add up.

3. Go cash-free one day a week

Why not try out a 'no spend day'? By doing this with family or friends, you could have a fun time without damaging your pockets.

Avoiding spending even 1p on a given day does wonders for awareness of how much money you fritter away on other days. It’s also a really effective way to highlight where and what you’re spending on, without thinking. If you can manage, try to do it more often or start on one day and build up.

4. Set budgets throughout the year

The best way to cut spending is to set a budget and stick to it properly – it’s one of the first steps that we take when we meet with all of our customers.

Review bank statements and credit card bills to determine what you've been spending on and ask yourself which items you could have gone without - or at least cut down on.

Simply switching to a cheaper supermarket could save you £100s each year. Also, keep in mind annual occasions such as birthdays and Christmas can help you save money in the long run.

5. Hit the job hunting

Getting a better-paid job is a simple way to pay off more debts and save more money, but it’s easier said than done. To start, update your CV – it’s often easy to forget just how good we are and what we know. You could even start a volunteering role to get more experience in a field you're interested in.

It’s also worth asking to increase the number of shifts you do or hours you work if you want to earn a little extra cash. Babysitting, cleaning or walking dogs can also be nice little earners that are worth looking into.

6. Sell unwanted items

We all have lots of items lying around the house that we don't want, use or wear and they could be turned into much-needed money instead.

Check out easy-to-use selling sites, which are booming at the moment, or visit a car boot local to you.

7. Double-check your money commitments

Take a look over your card and bank statements to see if there have been any banking errors or fraudulent charges. Have you been charged twice for something or has a refund not been processed?

Also, think about what you could return. Are there any clothes hanging unworn in your wardrobe that you regret buying and you could get your money back on?

8. Make a list of fun free things to do

Paying off debts and cutting back on spending can be stressful and it’s not a particularly enjoyable process. It’s all too easy to feel like you're sacrificing a lot and not having any fun.

When you’re stuck for something to do and trying to keep the costs down, why not spend an afternoon discovering all the free days out local to you. And get exploring.

There's a lot to look forward to in 2022 and by implementing these top tips, it could be one of the best money saving years yet.