January can see many of us limping through to the next payday after splurging over Christmas.

In 2021, Brexit, the coronavirus pandemic and the rapid expansion of new buy-now-pay-later finance deals could make the January squeeze even tighter than usual.

And with research suggesting that half of us are relying on some kind of borrowing to get through Christmas and New Year, this could put many in serious financial difficulty.

If you’re feeling the pinch and want to escape from debt as soon as possible, try the following tips to get out of the red and in the black.

If you are struggling with serious problem debt and cannot afford repayments, you may need to talk to an insolvency professional. Call Umbrella Insolvency on: 0800 611 8888.

Budget

The first step in any plan to get debt-free is to make an honest assessment of what you earn and what you spend, including daily, weekly, monthly and annual expenses. Once you know what’s coming in and what’s going out, then you can work to address any shortfalls.

Audit your direct debits

A few pounds a month on Spotify, Netflix and Disney+ may not sound like a lot, but these three apps could set you back more than £300 each year. Review all of your direct debits online and cancel the ones that you don’t use regularly.

Cook at home

Not everyone will spend lots of money eating out or on takeaways, especially at the moment, but you might be amazed by what you can save by preparing meals at home. Some other cost saving food hacks you could try include shopping in the discounts section, batch cooking and buying more non-meat proteins like beans and pulses.

No-spending challenges

Taking on a no-spending challenge is a great way to save money in the short term. Challenge yourself not to buy any clothes for three months or try and cut out spending on food outside of the weekly shop. Taking on these time-limited challenges is a great way to train your brain to be thrifty.

Start saving

Once you have paid off all your debt its important you start taking steps to avoid debt in the future. Starting an emergency fund can help you avoid borrowing for unexpected problems. You can also try to avoid Christmas debt next year by setting up a direct debit to a new savings account now.

Struggling with problem debt or can’t afford repayments? Speak to an insolvency professional today. Call: 0800 611 8888.