Budget Today!
It may seem like the most simple thing to do but setting a budget and sticking to it can be the best thing for maintaining your finances.
Spending your money as you go can mean at the end of the month you are short on cash. This is how people end up taking Payday loans and getting into more debt problems. By setting your budget you allow yourself a certain amount of money each day / week and this will help your survive until the end of the month.
You must ensure you meet your essential bills like rent/ mortgage, food, council tax, gas / electricity etc before repaying the rest of your debts. A budget can help you realise how much money you have available to pay towards debts each month. Keep a record of your budgets so you can review this every 6 months.
"Look after the pennies"
When finances get tight and times get tough you need to look after the pennies, which could mean cutting back on luxury items.
Some luxury items can include gym membership (exercise at home / at the park), Sky TV, shop at ASDA not Marks and Spencers etc.
Change how you see credit
Credit card companies want you to miss payments and receive charges and interest so they can make profits. If you can't afford to repay it, don't use it. If you have debt problems and you need to use credit to survive then a debt solution would be required.
If credit cards are used carefully then you can benefit from free offers, improve your credit rating or use your credit card for the insurance for large purchases.
Tell someone
One of the reasons people struggle with debt is because they don't share the burden they feel. As such this can be detrimental to their health. Share your problems with friends / family or work colleagues - they can support you during a difficult time.
Inform your creditors
Tell your creditors about the tough time you're experiencing. It's important to keep your creditors informed of the debt problems you have, otherwise they may think you are refusing to communicate leading them to take severe action. Sometimes your creditors can work with you and help set up a payment plan.
Get debt advice
Speak to a registered charity for debt advice. There are a number of charities who can help you if you need their support - get in touch and they can give you qualified debt advice.
