Spring Cleaning your Debt

Cleaning in spring need not only refer to the house. Many out there could use a fresh spring approach to setting straight disorganized finances. Taking a second long look at one’s expenses may not only spare the headaches but heartaches too, as a considerable amount of money could be directed back to one’s savings.

All sectors of modern man’s life need careful programming and planning. This is especially true for finances. Nothing should be left to chance. For several years now, people all over the world use direct debits to pay bills without worrying about running out of time or running to the bank. It has been a very useful method for many:

– Direct Debit for Bills

*Paying bills by direct debit, not only saves you the headache, but also earns you a discount as quite a few suppliers offer discounts for paying this way. Look at those bank statements and decide which expenses are truly not necessary. For instance, are there any membership fees to anything you are no longer essentially a member of? Cancel them! Are there bills you have not been depositing enough money to pay off because you have given priority to something else? First things first and it is paying off debts that could sink you to the bottom.

*Is the light company keeping your budget in the dark?  

In some countries, citizens have a choice of deciding which company ‘lights up their lives’. If that is the situation where you live, then shop around for the best energy deal. This is usually available online through the company websites or price comparison websites. In England for instance, the best deal for the money is a ‘dual fuel’ situation and a great many suppliers offer discounts in the case of paying direct debit.


A serious leak in most budgets is the mortgage payments. Switching to a mortgage which suits your wallet is possible if there is equity in your home. For those with fixed rates or discounted deals this is not a choice since penalties will be imposed if someone decides to switch to a lower rate mortgage. All the more reason for prospective home owners to shop around and take extra care when deciding on a mortgage. For those who can switch to a lower rate mortgage in can make quite a difference in the savings. And that extra money may be used to pay off credit cards.

*Oh those Credit Cards!

Credit cards can be a person’s best friend or worst enemy. It all depends on how y o u handle them. Believe it or not, if there is a balance that cannot be paid straight away it can be transferred to a card offering 0 percent interest. When this is done, the next step is to note when the 0 percent period expires (in UK look here). Hopefully by then the debt will have been paid. If not, opt for another balance transfer to get the lowest interest rate possible. And do pay by credit card when absolutely necessary. Remember, you also pay interest and paying the full amount (which is ideal) when the bill arrives is not always possible; this is how those balances go-out-of balance. Prioritize!

*Is your Bank costing you?

Internet banking may mean fewer opportunities for potential bank employees, but for you it may mean banking without fees and lower overdraft rates. And where there are savings, there may be higher interest accounts when you make the point to search around.

So re-evaluate the offers of your suppliers, what your money is paying for and watch the pennies start to add up to a substantial sum in the end.