Debt How to Live on a Budget

Pay off Debt: 13 Ways to Cut Spending

Cut spending to pay off debt

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Saving money isn’t just about cutting back on the grocery bills or nights out. Look at other areas you could save, in order to cut your spending and pay off debt.


1. Mortgage

If it’s not possible to remortgage, you can request a product transfer to save you money. Make sure you do this when your fixed term is due for renewal, to avoid early termination fees. My fixed-rate, 2 year mortgage ended in 2014. This automatically transferred to a variable rate mortgage. Remortgaging isn’t an option for a stay-at-home mum without a regular income. But there is a way you can still save with what’s known as a product transfer.

A product transfer involves a telephone consultation and product recommendation, with revised monthly payments. You will remain with your current mortgage provider, however you will still need to sign new mortgage terms.

I’ve increased my mortgage term by 5 years, but reduced my monthly payments by £100 per month, with a reduced interest rate and a new two-year-fixed contract. This reduction is helping me to pay off debt.

If you have a regular income, you should also look at a remortgage (or mortgage refinance as known in the US) versus a product transfer, to ensure you are making the best saving.

Contact your bank to discuss your options. For US readers, visit to discuss how they may be able to help you. 


2. Loans

I don’t advocate consolidating your outstanding balances to pay off debt. It can work out more expensive, or you’ll be paying your debt off for longer. But, if your monthly credit payments are getting out of hand, you might consider arranging a loan to help you to save money and to get on top of your finances.

If you do this, you MUST cut up any credit cards and close the accounts. The temptation to use them with their £0 balance will be too much if you find yourself in a tight spot (and in any case, you should draw up a budget).

If a 0% credit card is an option for you, consider this as well and weigh up which will save you the most money. Will the balance transfer fee cost less, or more than the interest you’ll pay over the life of the loan? Work out the monthly payments, how long it will take to pay off the debt, and the total amount you will pay over the term.

Check your credit score; pay off debtPlease remember that each credit application you make can have a negative impact on your credit file, so consider each option wisely before proceeding with any applications. You can use free services such as Experian*, Credit Karma, and ClearScore to check your credit scores. 

*Experian’s free credit score is available to UK residents aged 18 years or over and subject to identity checks.

Ask for help

If you already have a loan and are struggling to repay it, please contact your bank to see whether they can help you. Taking a few moments to talk to someone is preferable to being hit with a CCJ (County Court Judgement). A CCJ will stay on public record for 6 years and seriously harm your credit rating.

In 2005, I was diagnosed with Hodgkin’s Lymphoma. I approached my bank to see whether they could freeze my repayments and put the account on hold. After some input from my local branch manager, they agreed. This meant I could focus on my cancer treatment without worrying about how I would repay my loan while not working.

It’s always worth speaking to your creditors. It’s empowering, and YOU are the one taking the control to pay off your debt.

3. Credit card balances

If you’re a regular follower of Martin Lewis and like me, then you’ll be familiar with his mantra to pay off your credit card IN FULL.

If you’re reading this post, the chances are you have an unpaid credit card balance you need to shift. As mentioned above, it makes more viable financial sense to transfer it to a 0% credit card to avoid paying unnecessary interest and therefore saving money.

Check out the note above regarding applications and your credit score. Remember to add the balance transfer fee to the outstanding debt to ensure you won’t end up paying more. Also, bear in mind that if you haven’t paid off the balance by the time the 0% interest period has finished, you may end up paying a higher rate of interest, so look for the offers with the longest interest-free period.

4. Utilities

So many of us end up spending more than we need to on things like gas and electricity.

Any comparison site can help you to save money, such as and Uswitch. These sites can ensure you are getting the best deal on your fuel prices and other bills. You’ll usually be locked into a contract for a year or more, although some of them have no exit fees.

At the end of each contract it’s especially important to look at switching again, as often the prices go sky high after your fixed-price term comes to an end. If this isn’t something you’ve done recently (or ever done!), you need to do it now. The savings can be surprising, and you can use that to pay off some debt!


5. Insurance

From car insurance, to pet insurance, to buildings and/or contents insurance, many people end up paying through the nose from auto-renewals which are often unnecessarily expensive. Be aware of when your insurance is due for renewal. Write it down on your calendar or set yourself a timely reminder, and make some price comparisons via one of the above websites. That way you can make sure you’re always getting the best deal.

Your current insurance company will send you a renewal quote, so it’s also worth seeing if they can beat your best quote for the convenience of staying with them, providing you are happy with the service. If you’ve not managed to switch in time, there is a 14 day cooling-off period, although any money already paid may not be refunded. In this case, it’s worth deciding whether it’s financially viable to switch, or stay with your current provider.


6. Water rates

To avoid estimated bills (and this goes for your other utilities, too), it’s important to check your meter reading on a regular basis and update the supplier. It also avoids any large unexpected price hikes if you’ve been paying a low monthly amount on a regular basis. In addition to this, you may be paying for more water than you originally thought you would, so use this opportunity to see if you can save.

Also, don’t waste water and fix any dripping taps!  Shower instead of bathing, don’t leave the tap running while brushing your teeth, don’t under-load the washing machine or dishwasher (unless you have an economic program). Pour that stale glass of water into the plant pot, instead of down the sink.

If you’re in an older property with no water meter and you pay water rates, you could be paying for more than you need to. On the other hand, if you have a large family who uses a lot of water, you might end up paying for more if you had a meter installed!


7. Council tax

Have you ever wondered whether you’re on the right banding for council tax? You probably are, but it’s always worth checking. If you’re over-paying you could be entitled to a rebate. You can check your council tax banding here, but have a read of this article on MSE (Money Saving Expert) first.


8. Mobile phone

These days, clever marketing techniques persuade us that we ‘must have’ the newest mobile phone. We think that we can’t do without the latest technology or unlimited data. But, do we really need them? What do you really need in a mobile phone? Are you a social media addict, or do you tend to stream movies and TV shows on your phone? Do you regularly take photos and post them to social media, or do you use it just for calls and texts? Do your photos have to be perfectly crisp, with the absolute best picture quality, or are you just happy with photo snaps?

All of these things will determine how important each feature is for you, and whether you really need the smartest smart phone out there. When it comes time to upgrade, do you really need to (DO you? You are trying to save money, remember), or is your phone still doing you proud?

If you’re still locked into a contract, contact your provider to see if your tariff can be amended. If you aren’t using your unlimited data, minutes, and texts, you could benefit from a cheaper contract.

I paid off my mobile phone contract and now only use Pay As You Go.


9. Broadband deals

There are lots of things to consider when it comes to your home broadband, and the main thing to think of is what you need it for. Are you a high-end user who streams constantly, is always on social media, and has 10 devices or more in your household? Depending on your usage, you might be better off with the fastest unlimited broadband, but this can also be expensive.

If you only tend to use broadband to check your emails and access the internet occasionally, you’ll probably be looking at a low-usage option. You can combine broadband with line rental, and there are also broadband, line rental and TV packages available. Your best bet is to look at a price comparison site such as Do your homework though and check customer service ratings, too – you don’t want to find yourself signed up to an 18-month contract with a service and provider you’re not happy with.


10. TV and entertainment

There’s so much entertainment out there today. Do you need catch up TV, Netflix, Amazon Prime AND Sky or NOW TV? Or could you manage with just catch-up TV and Amazon Prime?

Admittedly, they do all boast a different line-up, but the best thing to do is work out which one you watch the most and which shows you’ll really miss, and cancel those you’re not really using. It’s surprising how much great entertainment there is available on Freeview. There’s a lot to be said for traditional TV, and most modern technology comes with catch-up TV apps now anyway.


11. Online subscriptions

This one’s really important. Check your bank statements for any other monthly subscriptions that may be unnecessary. It might have been missed off your budget if the payment comes out via your bank card, rather than direct debit.

Do you have any online magazine or newspaper subscriptions that you could do without? There’s so much free content online these days, but if you need in-depth knowledge or research material, you can consult a book from my local library (free!). Plus, the money you save can be used to pay off some more debt.


12. Petrol

The obvious choice to save money would be to walk, or cycle, rather than drive, but that’s not always an option. It is possible to save on fuel costs by checking websites ( is one) that tell you where the petrol is cheapest.

Experience tells me that fuel is more expensive at weekends and around payday. Accelerating less, and lighter, safer braking can also help to reduce fuel consumption. As can removing unnecessary luggage in your car (it’s not a storage space!). If it’s rolling around in your boot and you don’t need it or use it, sell it!


13. Grocery shopping

I’ve written a whole other post on this, as this can be a big money-saver, especially if you’re adept at cooking from scratch. You could try downshifting – trying an own brand, rather than a leading-brand; or switch to a discount brand if you already buy the supermarket’s own label. Take the challenge and see if you notice a difference; you might be pleasantly surprised! Also, consider switching to a cheaper supermarket. is a really handy website/app, which helps you to find the cheapest place for your shopping (they also do Cashback, too!).

Collect vouchers out of magazines, and check online for discount vouchers to print off and take along. There are numerous apps such as Shopmium and GreenJinn that can also help you save with Cashback offers. Another option is to use the scan and shop function to see how much you’re spending as you shop, to avoid a scary total at the till. And then there’s my favourite tip: don’t shop hungry! And more importantly, if it’s not on the list or you don’t need it; don’t buy it.


Cutting your spending to pay off debt – final thoughts

I hope this will help you on your own journey to become debt free. It’s really important to remember that bills MUST be paid, and that they do not go away, you must pay off your debt. Ignoring them will result in bad defaults and CCJs, which show up on your credit file and can affect your ability to obtain a mortgage. Also, you’re paving the way for a better financial future for yourself!

Want some more money-saving tips? Head on over to Tuppenny’s FIREplace for a round-up of 30 frugal-living bloggers and our best tips to save money.


DISCLAIMER: Please note that I am not a financial advisor. This post is based on my own experiences which I share with you in the hope that it may assist you with your own debt-free journey. I will always recommend that you do your own thorough research, prior to committing to any arrangements you deem necessary. 

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