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Seven quick steps to help decimate debt in 2025 including unlocking £630 hidden cash
Save hundreds with simple tips everyone can do
IF you overspent at Christmas, rest assured you’re not alone.
One in ten of us will still be paying off our festive debts in June, but you don’t have to be among them.
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Here are seven simple ways to get on top of what you owe.
1. FACE FACTS: Make a brutally honest list of all your debts and monthly repayments.
Include the items you MUST pay, such as mortgage or rent, utility bills, food and council tax.
Finally, work out your income and how much, if anything, you have spare each month to go towards debt repayments.
READ MORE ON TACKLING DEBT
This will show if you need to cut costs further, perhaps by getting your groceries at a discount supermarket like Lidl instead of the bigger chains.
You can find a free budget template at .
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2. REIN IN YOUR SPENDING: It can be tempting but buying new things you don’t need will only get you further into the red — or extend your repayment period.
Aim to spend not a single penny more than you need to, so ditch daily coffees, nights out and new clothes.
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SAVE: An average of £120.
Four methods you can use to clear debt
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3. GO FOR ZERO: Credit cards are one of the toughest debts to clear.
Making only the minimum payment on a £3,000 debt can take you an incredible 27 YEARS to pay off.
Instead, shift your credit card debt to a card with 0 per cent interest and pay off as much as you can each month.
Find the best deals at .
However, it is vital you don’t buy anything else on the card or you will lose the 0 per cent rate.
SAVE: Average £100 per month on interest charges.
4. CLEAR YOUR CLUTTER: One in three of us plan to sell unwanted items this January, with eBay estimating the average Brit could make £630 listing their umwanted items online.
Try Vinted, Facebook Marketplace, Nextdoor or eBay.
Check whether you will be charged seller fees or if you get to keep all the cash you make.
And remember to follow the safety rules for each site.
MAKE: Up to £630.
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5. FIX CASH ‘LEAKS’: A monthly Netflix subscription or a weekly takeaway may not seem like a significant spend each month, but over the course of a year it can add up to hundreds of pounds.
Check your bank statements and identify where your little money “leaks” are, then stop subscriptions, direct debits and extra spending. Use the cash saved to tackle your debt.
SAVE: Average of £300 per year.
6. SEEK SUPPORT: Anyone struggling to get out of debt can check if they are entitled to extra help.
Visit .
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7. SAVE FOR CHRISTMAS: Avoid 2025 festive debt by saving for the big day now.
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Put a few pounds aside each week into a bank savings account, which you must give seven days’ notice to access.
This will help you avoid temptation and stop you spending it easily.
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