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Fast Track Getting Out Of Debt In 2025

The end of one year and the start of the next is often a good time to look back and review how far you have come. It also gives us a chance to look ahead and see what can be done to improve our situation.

If you are in debt review, then well done on making it through another year. Each year has its dangerous periods, like the easter holidays and the end of year pressure to blow your budget. So, if you are still on track, then well done!

It is however true, that the longer you stay in debt review the more dangerous it can become, why?

Because over time, inflation is going to be going up while your salary, might not be keeping pace.

Unexpected expenses can also come along and derail the best laid plans.

The solution is to think about how you can get out of debt faster. The sooner you put your debt behind you, the sooner your debt free life can start.

There are 2 things that can help you get out of debt faster in 2025:

Earning More and Spending Less.

Set Goals for 2025

Imagine watching a game of soccer at a large stadium full of people but with one small snag: There are no goals on the sports field and neither team has any way of scoring.

Boring!!

Pointless!!

If you are entering 2025 with only the vague goal of ‘paying your debts’ and ‘getting through each month’, then you are probably not alone. Lots of people are just trying to keep their heads above water, and get through each month.

Debt review gives you the chance to go beyond these common goals, and really focus on specific, achievable ways to get out of debt.

Need some help setting realistic goals?

Reach out to your Debt Counsellor to review your situation and get advice on areas where you can improve, debts you can focus on and ways to get the most bang for your buck?

Your Debt Counsellor can work with you to plan the months ahead. Once they review your situation, they can help you adjust your budget, find savings and build an emergency fund.

Earn More in 2025

If you are running out of money before you run out of month, then you need to earn more. Easier said than done.

How can you regularly bring in some extra bucks during 2025?

Before running to your boss to ask for a raise, ask your employer about how you can add more value to your role. If you can give them more value each day, then they will be happy to compensate you (even if they are tight fisted).

Rather than just ask for more money, why not ask for training to upskill you for a better paying role within the business? If you get the training but not the increase, at least you will have better skills to offer a different employer.

Another way to ‘earn more’ is to spend less on getting to and from work. Could you ask about remote work to reduce travel expenses?

You could of course, earn more by starting a side gig.

Can you offer your skills part-time to smaller businesses?

Can you buy something and sell it to others for a small profit?

Don’t over-commit, but look for small opportunities to increase income by using your existing skills (or things you own).

Spend Less in 2025

It might seem obvious that earning more will help you settle your debts faster, but people who earn a lot of money often have a lot of debt too. This is why spending less is a crucial part of getting out of debt.

‘people who earn a lot of money often have a lot of debt too’

You may feel confident that you have already cut back your expenses in the past and things are fine as they are. But are they really? Maybe you should check.

Spending a few minutes looking at your spending might reveal a way to save a few hundred bucks each month. Money that could be used to get you out of debt faster.

Food is always going to be a big expense. But the good news is that it is also an area where you can save a lot!

Have you started spending money for convenient food? Fast food maybe? Maybe a daily trip to the shop down the road for small luxuries?

Have you started shopping at the stores closest to your house, or on the way home because it saves you a few minutes or has easier parking but higher prices?

It’s time to think about the actual prices of the items in the store compared to elsewhere. Some stores are 10 – 15% cheaper for similar items. Imagine saving 10% on your food bill every month.

Can you look at options like meatless Mondays?

Have you considered low-cost ready pack value meals like FoodSocks?

Small & Big Changes To Save in 2025

There are lots of ways to save once you start to think about it, they can be big or small.

Check out loyalty and reward programs (especially free ones) at different stores. If you can get something extra for nothing, then go for it.

Shopping lists are a proven way to avoid impulse buying.

Shopping online can also help cut down on impulse shopping (but watch those delivery charges).

Sometimes you also need to think about big changes to significantly slash your expenses.

Could you move to a significantly cheaper living space? If it is slightly less comfortable, but still safe, then you could seriously consider it.

Could you rent out a room or take on a tenant or flat mate to reduce expenses?

Have you got any contracts that are coming to an end in 2025? Maybe you can switch to a cheaper option, switch to pre-paid or cut out the cost entirely.

Go over your insurance and other costs, get comparative quotes and see if there are ways to get the same services for cheaper. Often just asking for cheaper alternatives is a good way to get savings.

The point is, that if you apply your mind, you will find ways to save even when you have cut costs in the past. Do some homework and think about how you can cut costs in the months ahead.

Stay Motivated in 2025

We all know we can get bogged down by small picture stuff, just trying to make it to the weekend.

The end of the year gives us a chance to plan ahead. Try keep some of that big picture energy throughout the year next year. It will help you stay focused on getting out of debt, and not get distracted or begin to feel unmotivated.

Mark every milestone, no matter how small. Track each payment, know how many you have to go and tick each one off as you go.

Celebrate your wins. It might be as simple as increasing a debt repayment by a little this month, or it might be paying of one account sooner than expected.

Keep your eyes on the prize, getting out of debt. Imagine no longer having the stress of owing other people money. Think about your future when you can build real wealth for yourself rather than paying off debt to enrich others.

Make 2025 the Year You Win

Paying off debt is not easy, but it is worth it.

Remember, the longer you are paying off your debt the longer there is for something to throw a spanner in your plans. So, try get out of debt as fast as you can.

By earning more, spending less, and staying the course, you’re not just paying off debt — you’re building a better future for yourself and your family.

If you need help, remember, your Debt Counsellor is there to guide and support you every step of the way.

By spending some time thinking of ways to earn more and spend less, could result in next year being the year you turn a financial corner and start living your best life.

Plan now for a successful 2025.