There’s no escaping the fact that sometimes dealing with debt is just part of life.
Throw in an emergency or two and it can become very easy to fall into a money spiral that’s going nowhere but down.
But you don’t have to. There are things you can do to help avoid falling into further debt – and help to deal with the ones you already have that little bit easier.
Keep reading to find out more!
Controlling your spending
You may be thinking ‘what do you mean control it? I need to spend to live and pay my bills”. And this is true, but that doesn’t mean it’s fine to fling your money about left right and centre.
The best way to take a look at your spending is to create a budget. This can either be a physical document or even on your computer that will show everything that you earn alongside everything you pay each month.
This then allows you to compare it to your income and work out how much spare income you have each month. It’s important to make this accurate so make sure you account for everything you have to pay out for.
At the end of the day, how you spend your spare income is up to you. But by having a budget that allows you to know where your money goes each month, it will be easier not to overspend.
Make some changes
According to research, the average Brit will waste over £30,000 on direct debits for services or products they’ve either forgotten about or don’t use. This is a substantial figure and it highlights more than ever the importance of cutting down on the things you don’t need.
Creating your budget will help this as it will bring any bills you could go without to your attention. This could be anything from cancelling that gym membership you took out in January to switching energy suppliers.
The main point is, by cutting down your outgoings as much as possible, you’ll give yourself money that could be either better spend elsewhere or saved.
Save Save Save
Often when we think of saving, we always think of putting away large chunks of cash every month. But this isn’t exactly the best way to do it.
Saving a large amount from your wages, although a good way at saving loads quickly, can actually end up leaving you short. This then often leaves you no choice but to fall into the cycle of robbing your savings just to get by.
It’s been proven that the key to saving is actually to save smaller amounts more often. There are loads of ways to do this, such as setting up a ‘save the change’ programme with your bank. These allow you to round up your transactions to the nearest pound and puts the difference away for you.
Don’t use credit as a crutch
Credit is advertised as being there to help you, and to a certain extent, this is true. However, more and more people are becoming reliant on it just to get by.
Sure, they seem like a great help when payday seems further away than you like, but it’s important to remember that you’ll then have to add it as an extra outgoing next time – leaving you to fall into a vicious cycle.
As such, try not to lean on credit too much to survive. You may need to tighten the purse strings, but it can help you a great deal in the long run.
I’m already in debt, is it too late?
Once you’re in debt, it often feels like it’s too hard to get out of. But the sooner you deal with them, the better.
If you’re reading this, you’ve already made the first step – to talk about your debt. All you need to do now is talk to TAD to find out more about what help is suited to your situation.