Debt, Staying out of Debt
Staying out of debt – sparkling debt management
My bills are mounting and my income doesn’t quite live up to my outgoing, so how can I get that sparkling debt management plan that some people have in place. For most this is a quandary and one which increasingly becomes an issue for a lot of UK families and car owners. With budgets spiralling out of control and costs of everyday spending increasing it’s never been so important an issue for many us of.
So what can we do?
First things first we must consider balancing our books, household accounts are extremely important but a lot of people have never made a list of what goes out and what they have coming in. By making a plan or even a list of this everyday spending we can start to build up a picture of where our money should be gong and where it isn’t. Living costs are essential and so paying bills, spending on food bills and the costs of either rent or mortgages must be top of our agenda in this plan. By separating your money out according to the essentials you can clearly see what you have left over for the spending we all like to. Secondly by cutting down on unnecessary spending we can try to keep a lid on were our money is going, do we really need the items we have just out into our basket at our local supermarket or not is the key question. Sometimes we spend out of habit but don’t really need to.
Avoiding frivolous spending will go a long way to cutting down the use of credit cards which only add to what we have to pay out each month. One way of doing this is to stick to your plan, only buy what you need when you need it and to avoid getting further into debt through the use of credit. If you do need credit, fine, it can’t be helped especially at certain times of the year such as Christmas or summer holidays but one thing that’s really important is comparing the types of credit on offer and making sure that you get credit from reputable lenders who will work with you to ensure that you Can actually afford to pay it all back.
A simple way of tackling extra spending at expensive times of the year is by using any spare cash that you have saved up through the use of your budgeting plan to out some aside, just a little each week will add up and help reduce the burden of finding that bit of extra cash when you need it.
Not an easy thing I hear you say and I agree but you know the saying ‘every penny helps’.
Most of all if you need help with managing your money and outstanding debts then go get it, there are lots of organisations who can help, don’t bury your head in the sand and put it off, get the advice you need and help in managing your household accounts as soon as you need to reduce the amount of worry and extra debt later on. Step change is one organisation that I found extremely useful which offers free advice on debt management and will really help if you need it.
Car costs can add to your financial worries and does add up, consider car sharing or switching your car insurance company, look at car finance deals that will help not add to your money worries and if in doubt if it’s the right thing for you then make sure you have a full list of key questions that you need to have answered before singing on a dotted lines.