HOW TO SAVE MONEY WHEN YOU'RE IN DEBT
A practical reset for people who feel overwhelmed by monthly bills and debt.
Saving while you are repaying debt feels contradictory. Yet a small buffer is exactly what stops the next unexpected bill from landing on a credit card or an overdraft.
This is not advice about your specific situation. It is an order of operations that works for most people: clarity first, then room to breathe, then one thing at a time.
START WITH THE REAL NUMBERS
Almost everyone underestimates their spending. Not out of denial, but because scattered payments become invisible. Pull three months of bank statements and add up what actually left.
Write down for every debt: the balance, the monthly minimum and the interest rate. Without that list, debt feels like one large cloud. On paper it is a row of numbers you can work through.
- Monthly income, including benefits and irregular work (use the lowest realistic figure).
- Fixed costs: rent or mortgage, energy, insurance, telecom, transport.
- Repayments and interest per creditor.
- What is actually left, not what should be left.
SEPARATE ESSENTIALS FROM OPTIONAL SPENDING
Essential is what keeps your housing, food, health, work and safety intact. Everything else is a choice, even if it has been running for years.
The goal is not to cut everything. The goal is to know what is a choice, so you decide on purpose instead of paying on autopilot.
- Put every line in one of two columns: essential or optional.
- Keep one optional thing that genuinely gives you rest or joy. A fully stripped budget never lasts.
- When in doubt, pause rather than cancel permanently.
AUDIT SUBSCRIPTIONS AND RECURRING BILLS
Subscriptions are designed to be forgotten. Streaming, cloud storage, the gym, apps, delivery services and insurance that overlaps.
Search your banking app for recurring amounts and list them with their notice periods. One afternoon of work often pays every month afterwards.
- Used in the last 30 days? If not, pause or cancel.
- Already covered through your bank or employer? Drop the duplicate.
- Annual billing can be cheaper, but only if you can carry the yearly amount.
COMPARE HOUSEHOLD COSTS
Energy, health insurance, telecom and insurance are where an hour of comparing pays the most, because the saving repeats every month.
What you save depends on your contract, your usage and your situation. Want a complete checklist? Read 10 ways to reduce your monthly expenses.
- Note your current rate and end date before you start comparing.
- Look at the total yearly price, not the welcome discount.
- For health insurance, start from your excess and the care you actually use.
BUILD A SMALL EMERGENCY BUFFER
A buffer of a few hundred euro is not a luxury, it is the brake on new debt. Without one, every broken washing machine becomes another loan.
Start with an amount that feels almost too small and keep it on a separate account, away from your debit card.
- Automatic transfer on the day your income arrives.
- Separate savings account with no card attached.
- Send windfalls straight there instead of letting them drift.
CHOOSE ONE DEBT PRIORITY
Attacking everything at once rarely works. Pay the minimum everywhere and put your spare room on one debt.
Pick the highest interest if you want to minimise cost, or the smallest balance if you need momentum. Both are defensible. Not choosing is the problem. If you need extra room, see 10 side hustles you can start with €0.
- Behind on rent, energy or health premiums? Those always come first.
- Contact creditors before a collection agency takes over.
- If you cannot make it work, ask your municipality or a debt support organisation for help.
REVIEW PROGRESS WEEKLY
A plan you only check monthly is always behind. Ten minutes a week is enough to correct course before something breaks.
Judge yourself on direction, not perfection. A bad week is data, not proof that you cannot do this.
- What came in, what went out, what surprised me?
- What is the one thing I will do differently next week?
- Is my buffer intact and did the repayment go through?
TURN IT INTO NUMBERS
Use Money Reset to see what is actually left each month, and Debt Reset to decide which debt goes first.
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General information and self-help. Not financial, legal or debt counselling advice. If you get stuck, seek help through your municipality or a recognised debt support organisation.
NEXT STEP
Want more room in your monthly costs? The checklist with 10 concrete savings helps you pick a priority.
10 WAYS TO REDUCE YOUR MONTHLY EXPENSESREAD NEXT
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