Welcome to the New Year. I have a simple message to kick off the new Year …and that is…

Don’t Give Up

 Keep up the planning and the scrimping and the sacrificing and doing things a better way. Continue to be generous but sensible. Use cash wisely, and don’t purchase things you do not need. Keep track of all your expenses and stick to the plan.

If you haven’t already listed your debts…do it now.

 List them in order, lowest balance to highest balance. Be real, be honest with your self. Assess the situation, once you know how bad it is you can be stirred into action.

If you haven’t worked out an expenditure plan…do it now.

 Start off the year on the right foot. Commit yourself and your family and reduce expenditure. Find smart ways to reduce the outgoings. Take charge, reduce the incidence of the salesman winning over your winning.

 Recheck your mobile phone plan – is it the best.

 Recheck your internet plan – is it still the cheapest.

 Pay TV – do you need it?

Have a look at your insurances – have you got what you need, not what your broker seems to think is a good idea.

Do you need that third car?

 Do you need the second car?

 Have you got a bulky goods grocery shop option? Or a cheap supermarket nearby? Buy in bulk. But don’t buy stuff that you do not use, just because you can save in bulk.

 Get ready for higher electricity and gas prices. What can you do to reduce your energy usage? Teach the kids on the importance of reducing energy use – turn off the light, only use the heater when you need it. Reduce the thermostat of the central heating. Don’t use the clothes dryer except for emergencies. Wash your clothes before you need them and hang them to dry.

 There are lots of things that you can do to cut expenditure and re-prioritise your spending to debt reduction.

 If you have a job, be thankful, there are plenty of people that do not have a job and are looking for one.

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“Four out of five Australians are worried about their ability to meet future debt repayments, a survey shows.

The biannual survey by data intelligence company Veda, found 82 per cent were worried about their ability to meet debt repayments in the future, up from 75 per cent a year ago.

The results come as fears grow of a global economic downturn on the back of Europe’s sovereign debt crisis.

Advertisement: Story continues below The survey also found that one in five Australians was struggling to repay their current credit commitments.

However, about 29 per cent of this sub group were considering applying for more credit in the next six months, the survey found.

“It is concerning that there are people struggling with their current debt levels but are turning to more credit as the answer, potentially edging closer to a debt spiral,” Veda senior adviser Matthew Strassbourg said in a statement.

The survey found people aged 25-34 were the most worried about their ability to repay debt and the most likely to borrow more in the next six months.

About 70 per cent of this age group had received help from a family member to repay debts compared to about 35 per cent for the rest of the population.”

AAP

Read more: http://www.smh.com.au/money/borrowing/most-australians-worried-about-debt-20111219-1p1v4.html#ixzz1h1dwBJ5q

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As a result your debt amount keeps increasing as the interest rate payment keeps getting added to the original debt amount. Debt consolidation is such a process that not only does it help you in merging your multiple debts into a single one, it also helps in reducing the interest rate on your outstanding debts. Now once you have so many things in your favor, all you need to do is save enough money to make your debt payments. Here are some ways in which you can save money for making debt payments.

1. *Save on utility bills* – This is a great way of saving money.

Disconnect the landline and use your mobile phone only when you require contacting somebody for conveying any message and not just for doing chit-chat. You should use electrical appliances only when needed and not keep them switched on when not in use. Also try and use public transport as much as possible, especially when travelling alone in order to save money on gasoline.

2. *Have entertainment activities with the family* – You can organize activities which can keep the whole family entertained. Rent movies and watch in DVD at home. In that way the family will get to spend quality time together and costs of movie tickets and popcorn will be saved. You can have special Saturday cookie making competition where every family member has to make a batch of cookies and decorate it. You can come up with such innovative ideas to keep the family entertained at home and thereby reducing the cost of entertainment.

3. *Shop smartly for clothes* – Nobody likes to wear the same clothes day in and day out. But what can you do if you have to save money and still dress nicely. You can buy tops of solid colors and different accessories and jewelries to give each top a new look each time.

4. *Save money on food* – There are various ways in which you can save money on food. You can stop eating out; buy things in bulk when they are non perishable items, buy item of generics brands in order to save money on food.

Thus you can see how the above tips can help you save money for paying back your debts.

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