How-to Guides » OLD GUIDE Destroy your debt

Step five: Start to save

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Once all of your debts are paid off you can think about saving - and provide yourself with an emergency fund so you never get in debt again. Hurrah!

So don't get used to the extra money each month - set up a direct debit so that hard earned dosh goes into a Cash ISA or savings account instead.

You can boost your coffers by examining your budget and thinking how you could trim your expenses a little each month. Check out Frugal Food to see how you could save on your food shopping and our moneysaving tips articles to learn how to make your pound go further.

Once you've got into the savings habit you may want to take things a little further and start saving a little each month in separate accounts to cover different things (e.g. a car account for potential garage bills, a holiday account for next year's trips, a pet account if you're not keen on paying for pet insurance).

Plus if you can put a little by for your car/home insurance bill you'll have enough to take out an annual policy (and save on having to pay monthly). Get into the savings habit and hopefully you'll never have to spiral into debt again.

Take the next step to destroy your debts

Compare savings accounts at lovemoney.com