Maximise Your Income in 6 Steps

You might be keen to boost your income just to be able to treat yourself to the finer things in life, but if you’re struggling with mounting debts, boosting your income can be essential to provide you with some debt relief. So, what are our 6 top tips for maximising your income?

Number one:

Pay off your debt using savings

“What?” I hear you ask.

It’s probably taken you a while to create a comfortable nest egg and using that money just to pay off what you owe can feel like a waste.

But consider it like this: according to Swanlow Park, the amount of interest UK citizens made on their savings, in 2020, was an average of 64p. Whereas the average interest you pay on a standard credit card is around 20% in the UK

This means you’d be losing money if you had savings but had debt. In the long run, you’re better off paying off any debts and starting from zero.

Many of us keep savings for an emergency expense but often expenses like these can be covered by insurance. Think about looking into home, car, and buildings insurance – they can make sure your assets are looked after even if you don’t have savings.

If you’re saving up for something like a holiday, wedding, or a house, you might think that you can’t sacrifice what you’ve managed to put aside. You don’t need to.

Just think about putting some of it towards paying back your debts each month. If you’re paying into your savings account every month, consider splitting that payment in half – half towards savings, half towards paying back what you owe.

One effective way of doing this would be to look at a Debt Management Plan (DMP). A DMP can help you to prioritise what’s important and get you back on track with your finances.

Number two:

Revise your current contracts

Whoever your provider is for any contracts you hold; they’ll want to keep you as a customer. So, call them and ask for a better deal, there is always a better deal out there and there is always room to negotiate the price. And if they won’t give you a better deal? Then why not swap?

We challenge you to contact the companies that you pay the following for and see what other deals are out there:

• Mobile contract
• TV, landline and internet
• Insurances - Home, Contents, Life, Car, etc.
• Breakdown cover
• Energy
• Bank account
• Savings account
• Credit cards

Top tip:

Number three:

Get cashback

Sign up with a free cashback company and start getting money back on the things you buy.

Cashback works by getting a small percentage back of what you spend but even a small amount can help you to maximise your income.

Number four:

Sell, sell, sell!

Often, we hold onto things for sentimental reasons, things we will never use or wear again. It can be difficult to give those things up, like your wedding dress or suit, your old instruments, or your adult child’s baby clothes. We hold onto these things for the memories, but those memories won’t fade if we sell those items that we don’t need anymore.

Think about it like this, those items would just be gathering dust but someone else may appreciate and cherish them. You’re sharing those items with someone else to brighten their lives and you’re making some extra cash, at the same time.

You probably won’t be considering selling your sentimental items unless you’re struggling financially. Another way to organise debts would be to consider a DMP. A Debt Management Plan could save you from having to sell off precious memories.

Number five:

Got a spare room? Get a lodger

You might not have thought about it before, as a means of making money, but renting out a room in your home can be an effective way to boost your income.

For example, did you know you can earn £7,500 per year tax-free by taking on a lodger? It’s called the Rent a Room scheme. If you’ve got a debt problem, this could be a fantastic way to start paying back what you owe.

Number six:

Claim the benefits you are entitled to

Many of us don’t realise we could be missing out on the benefits that the government offer.

Check out the benefits calculator on Entitled To, to see what you could claim, or read our handy guide to claiming benefits here.

Struggling with debt?

All these tips are great ways to maximise your income, but if you’re struggling with debt, that might not be enough to help you. A debt management company like ours could help you get back on your feet, and, in the long run, leave you with some extra income.