Ways To Avoid A Serious Debt Issue
Personal debt is something that is, generally, quite easy to get into. National statistics show that, in combined personal debt, the UK is almost 1.5bn in the red.
To avoid getting into debt, you can easily do this by adopting a sensible approach to spending. Avoiding using your credit cards and making unnecessary impulse buys, and try carrying only the cash you need with you each day. If you spend a 5 or 10 at lunch each day, try bringing your won lunch to work. You can make your money work for you by shopping around, using loyalty cards and looking out for special offers.
Budget. Though it may sound daunting at first, budgeting can make the difference between not making your utility payments and a good night’s sleep. Make sure all your outgoings are accounted for (before payday) – and pay everything on time – the coming month will be much more bearable.
Manage your current debt: You will often see advertisements for debt consolidation loans for people with a bad credit history, but more often than not, these involve high interest rates that lead to more debt. Many lenders will negotiate with you if you are running into trouble, so always check directly with them first, and never ignore arrears letters – the problem won’t go away. If need be, seek impartial advice from the Citizens Advice Bureau or the Consumer Credit Counselling Service.
Limit outgoings – spend only what you need to. Avoid impulse purchases, spending on credit cards and declining any ‘buy now pay later’ offers from retailers. Also, when you do spend money, make sure you compare the available prices to get the best deal possible before you buy. Buying grocery essentials from budget stores can also reduce your regular outgoings considerably.
Doing part time or weekend work is a great way to bring in extra money each month if you have an unforeseen expense, like a large bill to pay. So whether it’s doing weekend or evening work in a bar or shop, you don’t need to resort to your credit card or overdraft – try and make the money instead.
Find out more about debt management.
