Easy strategies to reduce debt, save money and manage your finances

If you’re feeling the pressure of mounting debts or struggling to manage your finances, you’re not alone. At One Stop Advice Centre, we understand the challenges many people face when trying to balance expenses and income. This is compounded for those who struggle with the English language and the provesses of debt management.

The good news is that with the right strategies and tools, you can start taking control of your financial situation today. Give us a call at One Stop Advice Centre to make an initial appointment and look at these practical tips to reduce debt, cut unnecessary spending, and save money, along with helpful government resources to support you.

1. Understand Your Financial Situation

Start by getting a clear picture of your income, expenses, and debts. Create a simple budget using the UK Government’s MoneyHelper Budget Planner. This tool helps you track your spending and identify areas where you can cut costs.

2. Prioritize Essential Expenses

Focus on covering your basic needs, such as:

• Housing: Rent or mortgage payments.

• Utilities: Gas, electricity, water, and council tax.

• Food: Essential groceries.

Once you’ve covered these, allocate remaining funds to address debts and other financial commitments.

3. Reduce Unnecessary Spending

Cutting back on non-essential expenses can free up significant funds. Here are some ideas:

• Cancel unused subscriptions: Check for memberships or services you no longer use, such as streaming platforms or gym memberships.

• Limit luxury purchases: Reduce spending on dining out, takeaways, or premium brands.

• Shop smarter: Use discount codes, cashback apps, or loyalty programs to save on purchases.

  
  

4. Find Better Deals on Services

Switching providers can save you hundreds of pounds each year. Use comparison tools endorsed by the UK Government, such as Ofgem’s energy comparison tool, to find the best rates for energy, broadband, and insurance.

5. Sell Unused Items

Decluttering your home can help you generate extra income. Sell items you no longer need on platforms like eBay, Facebook Marketplace, or Gumtree. Every little bit helps when tackling debt.

6. Set Realistic Financial Goals

Break down your debt into manageable chunks and set achievable goals. For example:

• Pay off high-interest debts first.

• Set a monthly savings target, even if it’s a small amount.

  
  

7. Use the UK Government’s Breathing Space Scheme

If you’re struggling with debt, the Debt Respite Scheme (Breathing Space) provides a 60-day pause on creditor actions, giving you time to seek advice and create a repayment plan. Learn more at Breathing Space.

8. Consider Professional Help

Charities like StepChange or Citizens Advice can provide free, confidential debt advice. They can help you set up debt management plans and negotiate with creditors on your behalf. One Stop Advice Centre is here to help you as well as national orgainsations like

Citizens Advice

9. Automate Your Savings

Set up a direct debit to move a small portion of your income into a savings account each month. This makes saving effortless and helps build a financial safety net over time.

10. Review Your Finances Regularly

Make it a habit to review your income and expenses monthly. Adjust your budget as needed and celebrate small milestones to stay motivated.

Resources to Help You Get Started

Here are some additional resources to support your journey:

• Budgeting and Saving Tips: MoneyHelper

• Free Debt Advice: National Debtline

• Benefits and Grants: Check your eligibility for financial support through the UK Government's Benefits Calculators.

Taking control of your finances can feel daunting, but every small step adds up. By implementing these strategies and seeking the right support, you’re on your way to a more secure financial future. For more advice get in touch with the team at One Stop Advice Centre.