Many people are having difficulties with their finances at the moment, and if this applies to you then you certainly aren’t alone. It’s important though that you put plans in place to get yourself out any debts you are in so you aren’t spending unnecessary money on high-interest repayments.
Start to budget
First of all you need to work out how much money you have coming into the household, before making a list of every single payment you make out. Include all of your bills, mortgage/rent payments, debt repayments and factor in estimates for things like supermarket shops, clothing and days out. Any money left over is your disposable income which, if budgeted effectively, could be used to help pay off any debts you have more quickly.
Look for better deals on bills
So many people are overpaying for household bills, especially when it comes to your electricity and gas. Most don’t even have a clue that their energy provider is charging them far more than they need to, or just can’t be bothered to shop around. However, by carrying out the relatively easy task of shopping around, you could potentially save hundreds of pounds per year. Also make sure you are paying all of your bills by direct debit to ensure you are getting the very best price possible.
Have a clear-out of old stuff
Most houses have so much clutter lying around, or stored in the roof or garage, so set time aside to have a good sort out and put together a pile of stuff that you are going to sell. Whether you decide to have a garage sale, trek down to the car-boot or flog stuff to a friend, you’ll be able to raise a bit of extra cash while tidying up your home in the process. It’s even possible to sell stuff online for free when it comes to more specialist items, which means you don’t even need to leave the comfort of your own home.
Switch/consolidate credit cards
Credit card debts are some of the worst you can have due to the really high interest charges they come with. For this reason you should try to get a new one – although this may sound like you are getting yourself into more debt, if you find one which offers a lengthy period on balance transfers, you can move all of your debt from other credit cards onto the one which gives you a bit of extra breathing space for paying it off, without you having to worry about the debt growing any bigger.
Implement some lifestyle changes
Finally, try to be more disciplined in the way you are your family spend money. Try to do alternative things for enjoyment, for example, instead of going down the shops on a Saturday afternoon, why not go for a walk together in the countryside? Instead of eating out, why not make a nice, home-cooked meal? And when you are out shopping for things like food, why not pick up the supermarket packed items rather than the more expensive branded products. All of these little things will slowly make you feel like you have more money in your pocket to help you settle your finances once and for all.