Of course, before you become debt free however, you need to put together a plan on how you’ll get there and the best option is to put together your own personal finance planner which looks at what you spend and when you spend it. This will allow you to see what your essential costs are and what you could potentially look at reducing! The way we would suggest you do this is by getting a copy of your last three months bank statements and tallying things into various categories. You’ll have your essentials like rent, bills and food but things like takeaways and impulse buys are all things you can try to cut out or reduce!
Another thing you need to look carefully at is how much of your debt you pay off each month. As an example, of you have debt on a credit card and pay only the minimum amount each month, you’ll be paying mostly interest and very little of the debt itself! Why not consider using that which you can save from your outgoings to pay off an increased amount to clear the debt quicker? Another thing to consider is moving the debt onto a 12 month 0% interest credit card to make sure that all your payments are full payments and that you’re not paying interest too!
All in all, becoming debt free for most people in a year is more than possible, you simply need to be prepared to make a few sacrifices in your lifestyle, go out a little less and work a little harder! Trust us, however, it’s more than worth it when you see you’ve cleared those last few pounds!