Summer is a time when most people are off on holiday, and attraction to buying new summer clothes and other items becomes somewhat of a necessity as soon as the sun starts shining. As moods begin to improve, wouldn’t it be nice to not have to worry about any debt over the summer? Find out how to solve your debt problems here in our step by step guide to a debt free summer. Continue reading
Choosing how you will get out of debt is the first step to taking back your financial life. There are two major types of programs that you may be able to consider if you are looking to stay away from bankruptcy. Debt consolidation and debt management are programs that may sound similar, but are in actuality very different. Here is a great video explaining answering the question of “What Is Debt Consolidation?” and here are some of the major differences that you can expect.
Are you struggling to meet your financial obligations? Would you like to get out of debt as soon as possible? Then you might have to use lots of different techniques to keep your lenders at bay. The advice in this article should help to make sure your finances are in order soon. You just have to take some of our suggestions and work out which will offer the best outcomes given your personal situation. Of course, you are not limited to the ideas on this page, and you should always research all the options before making your decision. Getting out of debt could take a heavy load from your shoulders, and it could also mean you have more cash to spend on your family.
Ways to reduce your debt:
- Making sure the payment you make are higher than the minimum threshold should help to reduce your debt more quickly. The longer you take the pay the money back, the more interest you will incur. You should always try to make the highest payments possible if you want to limit the amount of time you have to deal with the lender.
- Missing payments will mean you incur extra charges on top of your debt. It could also damage your credit rating. So, you need to ensure you always send the money with time to spare. Some lenders will charge anything from £10 to £100 for a late payment. If you think you aren’t going to have the money, it might be sensible to consider pay day loans. While they do not solve the problem, they could help when you are at risk of missing your deadline. So long as you know the money will be in your account soon, you can simply pay the lender back when the funds are available.
- Consolidating your debt is the best option for getting it sorted quickly if you owe money to multiple lenders. There are lots of companies out there that specialise in grouping all your debt together into one easy monthly payment. You will end up paying a little more in the end, but it will make your life easier. Best of all? The consolidation company will deal with all your creditors. Once a deal is in place, the lenders are no longer allowed to call you or send threatening letters.
- Sometimes it’s best to head to your bank and look at the possibility of getting a personal loan. That is the case if you owe money to lenders that is amassing lots of interest. Your bank offers the best rates of any lender, and so you could reduce the amount of pay by taking out a loan. Use that loan to pay all your debts, and then you simply have to keep up the monthly payments with your banking provider. It’s like a consolidation deal except you don’t have to pay such a substantial fee.
Presuming you want to pay your debts off as quickly as possible, the chances are you will need to cut back on spending. We’ve come up with some ideas that should help you to do that. Take a quick read, and hopefully everything will become clear.
Ways to cut back on spending:
- Doing your weekly food shop at budget stores could mean you save up to 50% on the items you purchase. While most of us like to eat good food, you won’t tell the difference between products from cheaper stores. Aldi is one of the most popular ones in the UK at the moment, but there are plenty of others around too. Staying away from the big names should mean you can make huge savings.
- Repairing broken items in your home will mean you don’t have to spend as much on getting replacements. If you’re unlucky enough for your TV to stop working, there is no need to shell out hundreds of pounds on a new model. Just search online to find repair businesses in your local area. The same goes for everything else. You can even repair old clothes if you learn how to sew.
- Making sure that all plug sockets are switched off in your home when you are not using them could save you around £200 per year. Doing the same thing with your lights and heating could increase that amount considerably. If you struggle to make sure everything is switched off, perhaps it would make sense to invest in some timers? Also, people who pay for their electricity via a meter should think about switching to a monthly plan. Those devices are always more expensive.
- Reducing the amount of time you spend behind the wheel could mean you save a lot of cash on fuel costs. There is no reason to use your car to visit the local shops when they are less than one mile away. You should simply walk or use a bike. Not only will that mean you have more money to give to your lenders, but it will also help to get your body in shape. We spend too much time vegetating in front of the television these days. Cycling to your local shops will help to keep you active.
Now you’ve read our ideas about getting out of debt this year, we hope you will be in the best position to get things sorted. By following our money-saving suggestions, you could have a lot more cash to give to the companies sending those threatening letters. Just remember that consolidating your debt will mean you no longer have to communicate with them. Some people find that is the best option as it reduces stress.
However you decide to progress this year, you just need to keep working towards your goal. Once your debt has been paid, you should refrain from borrowing again. There is nothing wrong with waiting a while and saving to get the items you need. That was how your grandparents did it, and they seemed happy, right? We all need to steer clear of this new lending culture that has been created during the last couple of decades.
When you have money worryings hanging over your head, it can feel as though you have a massive black cloud following you. You need cash to do (almost) everything in this world, and that can mean that your financial restraints are a real burden. You might think that you can ignore your debt issues, but doing so will only make the situation worse than it is now. Instead, you need to work towards being debt-free in the future. Set yourself a target and work for it so that you know this hardship will end soon. Here are some surprising ideas that might help you get rid of your debts.
Make extra cash at home
If you don’t have enough money to start paying off your debts, you need to find a way to increase your income. There are loads of ways in which you can make some extra cash at home. When you finish your day job, you might feel as though you are too sleepy to do any more work than you have done. That feeling is misleading. I bet you still have energy to see people and go out, don’t you?
Imagery via Flickr
Get rid of shopaholic friends
If your friends tend to spend loads and loads of cash, this is a massive problem for you. When you go out with people who spend a lot of money, you will feel social pressures to do the same. Some people have the money to spend, and so don’t need to worry about budgeting. If your friends are always encouraging you to spend your cash, you need to ditch them.
Take up free activities
Saving money does not mean that you need to stop having fun. You can still get out there and see people without breaking the bank every time you do so. You should look for some free activity groups so that you can meet people and enjoy your spare time without it costing you anything. You can find clubs online to join. Choose a club that suits your interests so that you can meet like-minded people.
File a claim
What got you into debt in the first place? For example, if you had an injury and had to pay for medical fees, did that cripple your finances? If someone else causes your financial woes, you need to talk to a compensation solicitor as soon as possible. Much of the time, people think that they can’t file a claim against someone else. In fact, if someone’s mistake has left you with debts, they need to clean up the mess.
Create a direct debit payment
If you need to pay off a particular amount of money every month, you should make sure that the transaction is automatic. Set up a direct debit to pay the fee so that you don’t have to think about it at all. If you have to make the payment each time, you will find reasons to avoid doing so. If the amount comes out without you doing a thing, though, there is no way you can stop it.
Sell your old gadgets
These days, people seem to have more gadgets than they can use on a daily basis. From tablets to games consoles, there is a massive range of things you might have in your home. If you want to make some quick cash, you should get rid of the things that you no longer use. Look at each gadget in your home and consider when you last used it. If you can’t remember when you used a particular item, it means you won’t miss it when you sell it. You can sell these items for hundreds at a time so why wait?
Money is a little tight this month and there are more bills on the kitchen counter than there are dollars in the bank to honour them. Something has to give. This creditor won’t mind too much if this month’s payment is missed and caught up later, right? Wrong. The fact is many modern creditors rely heavily on invoices being paid when they are due to ensure a healthy cash flow to pay their own bills. They usually have systems in place that automatically flag a missed payment, and the end result is a bad credit rating that can often haunt the even temporary defaulter for years to come. Continue reading
Do you ever ask yourself why you’re frugal? Why is it that you think about finance more than the next person?
It’s an interesting question as many people have had to be frugal at one time in their lives then are unable to let go of the frugality even after the absolute necessity has passed.