Money troubles hit us all at times and it is easy to become overwhelmed when these times occur. Feelings of stress, anxiety and depression can arise whist struggling with money and can exacerbate the situation. These ten tips are here to help you successfully navigate through these instances.
1) Be organised – Yes is it easier to keep that head of yours in the sand, but its not helping you. The only way you can get out of debt, is to know how much you owe and in turn plan to get out of it. Write a list of what you owe and what the minimum payments are for each one.
2) Cut out non-essentials – We all love a good night out or a takeaway in, but did you realise how much you were spending on those treats? Write a list of all the things you buy in the month and be honest with yourself over what you need and what you do not.
3) Stop using credit cards – Whilst you are trying to get out of debt, there is no need to put yourself into more. If you only use the cash you have, you are cutting down in saving interest rates from credit.
4) Draft a budget- It is much easier to know what income and outgoings and once non-essential items are cut and you know how much you owe, make a budget.
5) Strategize- Some people choose to either pay off the bigger debts first to pay off the highest interest debts. Others choose to pay off smaller debts so they can pay more debts off quicker, which leads to less creditors in a shorter amount of time. No strategy is right or wrong it is all down to the person.
6) Contact your creditors – Once you know what you can afford to pay and if it does not fall within the minimum payments, contact your creditors immediately. They may grace you a payment holiday so you can get your finances back on track.
7) Get Creative – Think of fun things you can do with your friends on a low budget, so you can still have fun but without breaking the bank. Swap a restaurant dinner for a picnic in the park, or a night at the cinema to a film night at home.
8) Think of ways to make extra money - Think can you play an instrument well enough to teach in your free time? Speak French or make furniture? Look at your skills and hobbies and see if some extra cash can be made to help you out when needed.
9) Open a savings account – First this can help you put money away for upcoming debt repayments and when the debt is paid off can be used to save for a rainy day or something to reward yourself with for getting out of debt.
10) Counselling – In a form of one to ones could be beneficial, especially when debt is troubling you. If you would like more information, please do not hesitate to contact Angela Jenkins at Therapeutic Counselling on 01209718246 or 07974 845549.