10 tips for families to save on household debts

We live in a world where rising costs or inflation is increasingly adding to the average household debts. It is increasingly difficult for many families to make ends meet, with many being pushed into debt. This is why many parts of Europe have increasingly been witnessing violent strikes & demonstrations by citizens.

Unfortunately, the economic crises are set to continue for some time due to the impact of ongoing COVID, the Russia-Ukraine war, natural disasters, etc. However, there are many simple tips and hacks that families can use to save money and reduce their household debts.

 Here are 10 tips and hacks for families to save on household debts:

Create a budget 

One of the best ways to reduce household debts is to create a budget. By tracking expenses and income, families can identify areas where they can cut back and save money. It’s important to be realistic and honest when creating a budget, and to revisit it regularly to ensure it is still working for the family.

Shop smart

Shopping smart means taking advantage of sales, coupons, and discounts to get the best deals on household items. Many store chains have loyalty/reward cards that can be used to good effect(e.g. Tesco). Families can also save money by buying in bulk, shopping at discount stores, and avoiding impulse purchases.

Cook at home

Eating out can be expensive, and families can save a significant amount of money by cooking at home. Family members may consider packing meals for work or school instead of buying fast food, etc. Meal planning, using leftovers, and buying groceries in bulk can all help to reduce food expenses.

Cut energy costs

This is the major component of the cost of living crisis. Utility bills can normally add up quickly but have significantly done so since the start of the war, in some cases 7-fold.  Families can reduce their energy costs by using energy-efficient appliances, turning off lights and electronics when not in use, and sealing air leaks in their homes.

Reduce transportation costs

Transportation costs can also be a major expense for families due to inflation. Consider saving money by carpooling especially for school runs  &  using public transportation for work, which benefits the climate by reducing emissions.  The activities of walking or biking instead of driving for shopping can be helpful while producing positive health benefits for the individual.

Use credit cards wisely

Credit cards can be useful tools as they can help to build up credit points, but they can also lead to debt if not used wisely. Families should avoid carrying a balance on their credit cards and should pay them off in full each month to avoid interest charges that can be massive.

Refinance loans

Refinancing loans, such as mortgages or car loans, can help families save money by reducing interest rates and monthly payments.

Negotiate bills

 Many bills, such as cable or internet, are negotiable. Families can save money by calling their service provider and asking for a better deal. Don’t allow car insurance to automatically renew, but shop around for better deals.

Sell unwanted items

 Selling unwanted items, such as clothes or furniture, can help families make extra money to put towards their debts. Many people have converted that family object for cash on eBay etc.

Seek professional help:

 If the family is struggling with debt, seek professional help from a financial advisor or association that can provide valuable insights and strategies for reducing debt. Many NGOs and charities can offer help & advice.

By following these 10 tips and hacks, families can reduce their household debts and save money for their future. It’s important to remember that reducing debt takes time and effort, but with dedication and persistence, any family can achieve financial stability and security.