How To Pay Off Debt With A Small Disposable Income

Today I want to talk about debt. If you’re trying to cut down on your expenses, or save money while you have debt it can feel like you’re fighting a losing battle. It’s something I know from personal experience. If you have a small disposable income – that’s the amount left over when you’ve paid your essential bills and living costs – paying off debt can seem impossible. But, if you want to INCREASE the amount you have left over every month, you need to pay off your debt. Seems like a vicious cycle right?

But don’t despair. It IS possible to pay off debt with a small disposable income and today I’m going to share how to do it with advice from some of the top UK Money Bloggers.

Advice from UK Money Bloggers

Tackle The Issues Head On And Understand Your Debt

Laura from – Thriftylondoner.com – Know the nitty gritty of your income and outgoings- and set a tight budget. It’s so easy to just make an educated guess on what your outgoings are, but by accounting for every pound you can shave off some money and use it to help pay off the debt.

Jade from Thriftyyorkshiremum.com – Go through every one of your bills, and make sure you are paying the absolute minimum you can. Use price comparison websites to check. Go through your bank statement with a fine tooth comb and make sure you are not spending unnecessarily.

Vickey from Ibeatdebt.com – Don’t bury your head in the sand! It doesn’t go away it only gets worse. It’s ok to talk about money and debt. As for clearing it off – think outside the box!

Emma from Emma Drew – My top tip is to take your debt and divide it by 100. Then tackle it 1% at a time. It is so motivating to colour in a square on a piece of paper once you have earned or saved 1%. For example if you need to pay back £1,000 you need £10 100 times. You can find your 1% in a variety of ways from cutting back to making extra money. FYI I personally love this technique and have used it for months after reading about it on Emma’s blog. Want to see how she cleared £15,000 of credit card debt? Check out her blog post here.

Make Some Extra Money

Charlotte from lottyearns.co.uk – It’s all about making a bit extra money! Got any junk you’ve been meaning to get rid of? Sell it!

Jennifer from Mamafurfur.com – You’ve got to look for ways to earn more money with side ideas in any way. I then recommend the snowball method to attach smallest debt first then work up the debts. Make it a game to pay them off as much as you can over the minimum payments and track your debt free date.

Faith from muchmorewithless.co.uk – Cutting costs only goes so far if you don’t have much coming in. I had a scary time when a freelance contract dried up just as my flatmate moved out and my savings were running out. So I signed up for a temping agency while interviewing for jobs – and one of my temp jobs turned into a permanent role. I couldn’t have paid off the balance I’d been moving between 0% credit cards without the extra money.

Hayley from missmanypennies.com – My tip is to try and make a little bit extra to put towards it. My aim at the moment is to try and average £5 extra a day through side hustles – surveys, selling stuff, micro tasks etc. It doesn’t sound like much but it’s nearly £2000 knocked off in a year, so it does make a difference.

Sara from debtcamel.co.uk – Reclaim any PPI you can – the end date for these claims is August this year! You don’t need to hand over a third of your refund to claims company, use the Resolver service which generates all the letters for you and which is free. Getting a chunk of money back can really boost your snowball. Don’t know where to start with PPI? Check out Sara’s comprehensive guide here.

Emma from beemoneysavvy.com – Any extra money you can earn on top of what you already get can go straight towards your debt! So take that extra shift, look for a side hustle, sell all your unwanted items and put it all towards paying off your debt!

Cut Down Your Costs And Save Where You Can

Fran from frompenniestopounds.com – Check that you are on the best interest rates possible. Could you do a 0% balance transfer? I managed to do a balance transfer on my credit card when I was paying off debt and it saved me loads in interest. Make sure you check the T&Cs and get it all paid off before the 0% runs out. It gave me a little bit more motivation having that deadline and I did it before it ran out!

Melissa from skinnyspending.co.uk – Use an automated savings bot like Plum. I have never missed the money it saves for me and it could be a good chunk to put towards debt after a few months.

And as for me? Personally I’m using the debt snowball method to pay off debt. In a nutshell, you need to write down everything you owe. Then you pay off the smallest amount first while making the minimum payment on everything else. When the smallest debt is gone, start on the next smallest one. Want to know more about it? Check out these fab posts from Charlotte Musha and Debt Camel.  

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