UK Preppers Guide to Getting Out of Debt

UK Preppers Guide to Getting Out of Debt

I believe that in order to live a more self-reliant lifestyle, getting out of debt should become a top priority. As preppers, you are supposed to stockpile supplies that can help you, and debt is certainly not one of those items. Besides, get out of debt and you’ll have more money for your preps.

Many people today have become slaves to the credit card and loan companies that offer you a chance of purchasing things that you otherwise wouldn’t be able to afford. Today, we are going to take a look at how you can break free from the chains and live a debt-free lifestyle.

Why not also check out our post on some great tips for earning some extra money.

How Much do you Owe

Before you can start to try and get out of debt, you first need to know exactly how much you owe. Be honest with yourself here and make a list of all the money that you owe, who you owe it to, and the interest rate. Add it all up and don’t worry if it is a lot, you need to be honest.

Prioritise Your Debts

Once you know how much you owe, it is time to prioritise those debts. Go back through your list and break the debts up in to two categories; priority and non-priority. Your priority debts are those that have serious consequences for not paying such as home repossession, bailiffs at your door or even imprisonment. These kinds of debts include:

  • Mortgage, rent, or loans secured against your home
  • Gas and electricity bills
  • Court fines
  • Child maintenance
  • Council tax
  • Hire purchase agreements for essential items
  • Income tax, national insurance and VAT
  • TV licence

Non-priority debts being everything else such as:

  • Credit card debts
  • Overdrafts
  • Payday loans
  • Bank or building society loans
  • Catalogue or store card debts
  • Money borrowed from friends
  • Water bill

When it comes to your non-priority debts like credit cards and loans, it’s often a good idea to start paying off your most expensive debts first (the ones with the highest interest rates).

Shifting Debt

Shifting your debts around is mainly about decreasing the cost of your debts, however it can also help if you put all your debts in one or two places, so that you can concentrate on paying it off.

Credit Cards

If you have a decent credit score, then you might be able to to save money by moving your credit card debt onto a balance transfer credit card with a 0% interest deal.

If you do decide to go down this route, it’s worth paying close attention to the length of the offer period and the card’s terms and conditions to avoid any surprise fees and charges.

If you can’t get a 0% deal, it might be worth contacting your current card provider(s) to see if there are lower interest rate options available on any of your existing cards. You could also ask for your limit to be increased on your cards with the lowest interest. You can then move your more expensive debt onto the lower interest rate cards.

Store Cards

Store cards are like credit cards, but can be used only in a specific store. Although they can offer discounts and deals, they may also have higher interest rates than some credit cards. It’s always worth checking the interest rate (APR) carefully before you use one to borrow.

You may also want to consider if you can afford to pay it off in full every month – if you can’t you could end up with a very expensive bill at the end of the month. If you have an existing balance on a store card, you can usually transfer it just like a normal credit card balance.


If you’re paying a large amount of interest on a loan, see if you can find a cheaper loan to pay it off.

If your loan is for under £3,000, you could save money by using a card called a ‘money transfer’ card with a lower interest rate. These credit cards pay money straight into your current account, which you can use to pay off your loan. Then you owe the card instead.

Make sure you work out whether it’s cheaper to use new borrowing rather than just continuing to repay your loan.

Finding Extra Money

To help pay off debt, it’s useful to find extra cash. Some things to consider include:


Making a budget can really help, especially if your debt is due to overspending.

Selling things

Whether it’s clothes, electrical items or even baby goods you no longer need, you might want to think about selling your unwanted things for extra cash.

Facebook, eBay and Gumtree are a an easy way to sell things quickly. If you have a lot of baby things, then try grabbing a stall at a baby sale event, such as the NCT nearly new sale.

There are lots of apps out there to help you sell your stuff — Depop is popular with fashion bloggers, and Preloved is a great alternative to Gumtree.

To free up larger amounts of money, you may want to consider downsizing your home to make your mortgage or rental costs cheaper, or going without a car.


If you have taken out loans, it’s worth checking to see if you were mis-sold payment protection insurance. It could be worth hundreds of pounds.

Have you incurred a bank or credit card charge for going over your limits? You may be able to reclaim the cash back.

It’s also a good idea to double check if you’re in the correct council tax band – around 400,000 homes are overpaying. You can check your council tax band on the government website.

Switching your providers

If you’re trying to save money, it might be a good idea to regularly review the utility providers you’re using to make sure you’re getting the cheapest deal. So you might want to regularly check up on deals for your energy, mobile phone, internet and insurance. According to the Department of Energy, the average person could save around £200 just by switching energy supplier.

Comparison sites like, uSwitch and Carphone Warehouse can help you find out whether you’re overpaying.

If you have a mortgage, it might be worth seeing whether your mortgage deal is as good as the market’s current rates. As long as you’re not locked in to a fixed or discount rate deal with early repayment charges, you can change lenders whenever you like and even a 1% difference in interest could save you thousands over a year.

It’s worth thinking about reviewing your mortgage at least once a year and when your current mortgage deal comes to an end or interest rates change. Just make sure to look out for remortgaging costs (such as early repayment charges and exit fees).

Grants and Benefits

If you’re struggling with gas and electricity and have large arrears, you can seek help from your energy provider such as the British Gas Energy Trust or the EDF Energy Trust.

For water bills, see Water UK.

Visit turn2us to see what other financial help there is. Also take a look at for other low income benefits.

Use Your Savings

If you have any savings, you might want to consider using them to pay off debt. The interest charged on borrowing will probably outweigh the interest you earn on savings, so it might make sense to clear your debts. Just make sure you don’t face any penalties for paying things off early.

If In Severe Debt

If you are struggling to make any payments, there are a number of options to consider, although none of these should be taken without seeking advice first.

  • Debt management plan (DMP) – an informal agreement between you and your creditors to come up with a payment plan. You can make a DMP plan yourself by calling creditors or working with a debt charity to help you put arrangements in place.
  • Administration order (AO) – If you have a county court judgment against you and are unable to pay in full then you can apply for an AO. This is a formal and legally binding agreement between you and the creditors.
  • Individual voluntary arrangements (IVA) – An IVA allows you to pay your debts over a set period. You will need to contact an insolvency practitioner to set up an IVA.
  • Debt Relief Order – If you don’t own a home, don’t have spare income, and owe £20,000 or less then you can apply for a DRO for eligible debts. A DRO will impact your credit rating; it will show up on your credit file and a lender may reject you if they see you have struggled with repayments.
  • Bankruptcy – If you are unable to pay off any debts, then you can apply for bankruptcy. If you are declared bankrupt, then your debts are written off, but you may have to sell your home and possessions, close your business and you could even lose your pension savings.

Where to Get Support

You don’t have to deal with debt alone. Just talking about it could make a huge difference to how you feel.

There are a number of organisations you can go to for free help and advice. These include:

Source: Clearscore


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