Costs spiral and living today is expensive. It easy for things to get out of control. The chances are if your debts are piling up quicker than you can repay them, you’ll need to make some changes and cutbacks. The sooner you can do this, the better it will be. Most lenders are sympathetic to a customer who tries who tries to clear their debt. Here are some ways you could consider making some savings and getting control of your personal finances back.
Write it down
The trouble for many is the fact that we don’t have an overall picture of the situation. Writing it down allows you to see exactly where your payments are going and when. For many people it’s not until something unexpected comes along that they realise they cannot cope. Understanding what is coming in and going out can help you deal with your debt.
Deal with your home first.
The largest debt most of us will take on will be our home loan. Make sure you have got the best deal for you. Look around and seriously weigh up the options you have. Don’t worry about loyalty to one bank or building society. If there is a better deal out there, go for it. Bankruptcy help is available and may be able to prevent foreclosure. Look at all the options available to you. One really good way of saving thousands is overpaying your mortgage. If and when you can afford it even $100 a month extra could save you a quarter of your final repayment figure.
Cut the Credit card Debt
Easy to use but extremely expensive and costly. Unless you are able to repay your credit card every month, cut it up. Consider taking out a fixed loan at a lower interest rate and you will save money on repayments.
Look at your Fuel Bills
Save money at home by switching suppliers and looking for better offers. Forget about loyalty. Many people find they can make significant savings by switching. Think about installing a smart meter where you can see it. Knowing how much you are using, including you water, is a massive incentive to cut back and save money. Remember how frugal you were during the summer drought? You can use less power, fuel and water.
Pay as you go phones are cheaper, and allow you to stop expensive monthly plans.
Make a shopping list
Before you go shopping, make a list of exactly what you need. Do not deviate from it. Use a calculator to keep control over what you are spending. Change your shopping habits to include own brand products. Is your supermarket always the cheapest option? Consider discount stores for better offers. A good place to buy cheaper fruit and vegetables can be the local market. You could even dig up your garden and start to grow your own!
What could you sell?
It might be that you have a sentimental item of value. Consider getting that classic car valued and be prepared to sell anything you don’t really need. Take a look at the clutter you have accumulated over the years. Put it on ebay or take your car down to the Sunday market and sell your old stuff.
Look around for other savings you could make.
Ensure your car insurance quote is the most competitive. Never renew automatically. If you need to travel, always book early. Flights and trains offer massive discounts on travel if you book ahead. Always ask yourself, ‘Do I need this?’ before making any purchase.
Maximise any income and understanding where your money is going is the key to managing your finance and getting out of debt.
Take heart, plan religiously, act on it and stick to it. You will get there!