Do you feel like you’re losing control of your finances, or are you struggling to keep on top of debts? If you’re looking to seize back control, here are some steps to take today.
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Assessing the situation
Many of us use Internet banking and apps to manage our money nowadays, but it’s very easy to spend money without really realizing. If you have direct debits set up, you shop online or you tap your card or your phone to make payments, it can be tricky to keep track of how much you’re spending. If you tend to get a nasty surprise when you check your balance or your credit card statement, it’s crucial to assess the situation and work out exactly where you are. Write down every balance and make a list of who you owe and how much debt you have. Once you are aware of your situation, you can start to take steps to make it better. It’s very easy to lose control, and if you keep a close eye on spending, this can make a really positive difference to your finances.
Starting to clear debts
Most people have debts, but there are different types of debt. If you have a mortgage or you’ve borrowed money and you’re keeping up with repayments, carry on as normal. If you’re borrowing money from different lenders, you’re taking out payday loans, or you’re using credit cards on a regular basis, there’s a risk of amassing debts that you might not be able to pay back. Credit cards and short-term loans are typically high-interest options, which means that you end up paying a lot more than you borrow. If you are struggling with debt, it’s critical to act fast. There is support available, and you can use processes like the Debt to Success System to start repaying creditors, reducing interest payments and working towards a more secure future. Seeking advice can help to provide peace of mind, as well as giving you a clear indication of what can be done to make a positive difference.
Managing spending
Some of us are extremely cautious when it comes to spending money, but others have a less stringent approach. If you’re one of those people who spend money when they can’t really afford to, making simple changes can have an incredible impact. Start by budgeting at the beginning of every month and set yourself a spending limit. Save when you can and adjust your mindset. Ask yourself if you really need a product before you add it to your cart and try and make the most of what you already have. Retailers and brands encourage us to buy as much as possible, but often, we purchase things that we don’t need. Try to cut down on non-essential purchases and focus on paying bills on time and saving. If you have a savings pot, you can treat yourself occasionally, as well as ensuring you have a fund available if you need cash in an emergency. If you struggle with spending, seeing a financial adviser is beneficial. They can suggest measures and tools you can employ to lower your outgoings.
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If you feel like you’re losing control of your finances, or you’re struggling with debts, there are ways to manage your money and work towards a brighter future. Don’t panic, seek help and try and restrict spending.