1. Use your savings

Having debt and saving at the same time only works when your savings earn you a better after-tax return. This rarely happens, though. Offset mortgages, which use savings to reduce the mortgage amount, may cost more long-term: there are cheaper deals available on other types of mortgages.

2. Speed up your repayments

Debt costs less if you make bigger regular payments towards it. Making the minimum repayment on credit cards does not help to reduce debt. Instead, make bigger payments, as much as you can afford. Over payments on personal loans may not be possible. Try instead to save money into a separate account such as a cash Isa. Once you have saved enough into this account you can then pay off the personal loan with one payment.

3. Control your spending

Try not to live beyond your means. Living an expensive life means using your overdraft every month and surviving on other forms of credit. Keep a daily record of your spending to help you to find out where your money goes. Try to think whether you need a new item before you buy it. Non-essential spending should be at a minimum and extra money should go towards clearing your debt. Cheaper brands mostly provide the same value as branded ones, so try to stick to these where possible. Paying in cash will prevent you from slipping into too much debt.

4. Draw up a budget

Monthly budgets can help you to keep control of your finances. You can also use budgets to see where you have gone wrong, and use that information to change your habits and make cutbacks on spending.

5. Switch credit cards

You want to clear the outstanding balances on your credit cards but the interest charges are holding you back. There are cards that offer a 0 per cent introductory rate for the first six months: Virgin Money, Nationwide and Tesco, among others. This will help to reduce your credit card balance, if done properly.

6. Switch to a better bank

Some overdrafts have high interest charges: 10 per cent or more. If you are paying this much and are spending most of the time in the red, you should consider switching to a different bank. Being in debt does not mean you should stay with the bank until everything is paid up.

7. Switch energy and phone companies

Check on a website such as www.uswitch.co.uk to see which providers are the cheapest in your area. Switching could save you money, depending on your current usage. Pay-as-you-go might work well for someone who has high mobile bills. Set a limit and stick to this sum each month – it’ll cut out all those high mobile charges.

8. Increase your income

Extra income always comes in handy. Try to get a part-time job or let out a spare room to a lodger. Rental income is tax-free until £4,250 a year.

9. Sell your possessions

There is almost always someone who is willing to pay money for your old things. You could auction things on www.ebay.co.uk or rent a pitch at a local car boot sale.

10. Move in with relatives

Not such a bad idea when you’re struggling with debt. If none of your other debt solutions work out, you could move back with your parents or with another relative who wouldn’t mind having you around.

Do you hate paying taxes? Although it can feel like a large chunk of your earnings go the Government, your money does pay towards things such as education and public transport.

Harrington Brooks have found some of the most bizarre taxes that we really would detest paying for:

Early 1000s: Heregeld

Lady Godiva demonstrated against her husband’s taxes, which were known as Heregeld. This tax paid the King’s bodyguard. She did this because the people of Coventry were suffering under the heavy taxes.

At first Earl Leofric didn’t want to listen to Lady Godiva’s pleas to repeal the taxes, but promised he would – if she rides naked through Coventry. This she did, according to the folks tale, and the king repealed the taxes.

1773: Colonial taxes

The Boston Tea party was not a party, but a demonstration against the taxation of many items in the 13 colonies, but especially against the tea that the East India Co. planned to sell. The East India Co. had tax arrangements with the British Government and had an advantage over the colonists: this created a monopoly because they could undersell the American merchants.

People in Boston decided to upend 45 tons of tea into the sea. They sneaked onboard a British East India Company ship and got rid of approximately £10,000 worth of tea. That tea would be worth £953,000 today.

This is one of the historic events that shaped the United States, led to the American Revolution and created the United States we know today.

1696: Window tax

I’m sure you have noticed older buildings that have their windows bricked up. Back in the 17th century, William III imposed a tax on houses that have more than six windows. He wanted this tax to help fund the wars in Ireland and on the continent.

These homeowners decided to instead brick up the windows. The tax was only repealed in 1851.

1995: Illegal drug tax (USA)

Tennessee joined 23 other US states on 1 January 2005 when they imposed a tax for possession of illegal drugs. Those who bought drugs had 48 hours during which to approach the Department of Revenue and pay tax.

They levied the tax per gram: $3.50 for marijuana, $50 for cocaine, and $200 for meth and crack cocaine. The department did not ask for identification and revenue employees were not allowed to report people who paid this tax. The tax was scrapped in 2006 after a judge deemed it unconstitutional.

1988: Removal of Mortgage Interest Relief

The Chancellor of the Exchequer from 1983-9, Nigel Lawson, ended double mortgage interest relief, in 1988. Mortgage interest relief at source, also known as Miras, was a subsidy to mortgage borrowers. After the abolishment people were buying properties to take advantage of the tax relief. One year after the relief was scrapped, the interest rates had increased to 15 per cent and many homeowners were facing repossession.

Late 1970s: The 98 per cent tax rate

The late 70s had a top income tax rate of 60 per cent. There was also an ‘investment income surcharge’ of 15 per cent, and no incentive to increase profits – almost everything was taxed. The 98 per cent tax rate led to high levels of non-compliance among the public and was finally abolished by Nigel Lawson in 1984.

1689: Tax incentives for gin production

William and Mary, the protestant monarchs, tried to discourage the importation of brandy. They did this because they disapproved of the Catholic French. Instead of brandy they tried to promote the production of gin by abolishing taxes and licensing fees.

The poor became enamoured of gin because of it became so cheap. This led to drunkenness, vice and poverty. The government tried to reintroduce the tax but that led to illegal production of cheap and poor quality gin. This only stopped in 1751 when the Tippling Act introduced reasonable prices, taxes and regulation of production.

1700s: Scottish whisky tax

Because of rising taxes on malt and whisky production in the early 18th century, about 400 distillers decided to go underground. There were only 8 licensed distilleries in 1777 and underground distilling carried on for 150 years before the Excise Act was passed in 1823. This act legalised whisky distilling but only for a £10 license fee.

That act nipped smuggling in the bud over the following 100 years.

1990: Poll tax

Margaret Thatcher’s government created the poll tax in 1989. Instead of paying tax on the value of the property, people had to pay tax on how many individuals were living in the property. Poorer people ended up paying more than the rich and this created animosity: about 30 per cent of people in some areas, including a Labour MP, did not want to pay this poll tax. They marched to Trafalgar Square on 31 March 1990 and demanded the repeal of this tax. Margaret Thatcher’s replacement got rid of the tax and brought in the council tax, which was based on the capital value of the property, in 1993-4.

1783: Hat tax

In 1783-4 Prime Minister Pitt the Younger introduced an excise duty on men’s hats. He did this to raise money easily for the government. The government charged retailers in London £2 a year. Retailers in the rest of the country were charged 5 shillings. The government collected the duty through a stamped ticket that was fixed to the lining of the hat. The public were not happy with this type of tax and they demanded amendments to it. 1804 saw recasting of the statutory definitions and the tax was finally repealed in 1811.

Yes, this is an old service but it is one that had me thinking: ‘Why didn’t I think of this?’ Lloyds TSB has a ‘Save the change’ service for all their clients who have personal current accounts with a VISA debit card. What this does is to round up all purchases to the nearest whole pound. This applies to purchases made in the UK as well as purchases made abroad.

This beats the old practice of clearing your pockets of lose coins and throwing them in a jar for a rainy day. While that is already an excellent way to save money, it might not be the most practical: consider lugging around a jar full of change to the bank!

A small amount of googling shows that Bank of America was one of the first banks to offer this incentive scheme. Their programme started in 2006 and they even offered to match clients’ change for 90 days. Some people find they save more money through this scheme than they thought possible and relish having ‘extra’ money – even though it’s their own.

Though, to be honest, it only works if you use your debit card to pay for everything. Someone who uses his or her debit card infrequently may not find this scheme worthwhile, and would be better off by saving spare money into a high-interest account.

For those of us without such discipline, this scheme could be the perfect starting point for would-be savers. So many of us buy all those morning coffees and lunchtime snacks, without ever considering saving the change. This forces you to save, even if it is only a few pounds every month.

Let us know your thoughts in the comment section and tell us whether we are on the right track. Would you consider this as a good way for saving-intolerant people?