| As we all know, there's a worldwide credit crunch happening, affecting everything from our bank accounts to the price of the fuel - both for our cars and to help heat our homes.
As a result, many of us will no doubt be worried about the state of our finances, but what can we do to try and ensure that we keep our financial situation as healthy as possible?
A good way to start is by analysing your finances in order to get to the bottom of any potential debt problems, there are a number of aspects you should consider when doing a bit of digging as part of your debt management plan:
First of all, calculate your monthly cash flow, taking into account everything from wages and benefits as well as any other contribution payments. Then subtract your outgoings - which range from mortgage, rent and loan payments to the weekly shop.
Consider how much you are spending each week, on food, rent and non-essentials such as CDs. Then ask yourself, could I really live without those non-essentials for a month or so while I try and reduce my debt levels? Small changes such as these can be very useful in freeing up vital cash in order to pay for more important outgoings, such as rent.
Look at how much you're spending on food each week. Consider cheaper options on certain items in order to save yourself a little money. Supermarket-own brands can be a useful alternative as you can often get a bigger quantity for less money, and some of these are just as tasty as those expensive branded products you usually buy.
Work out how much you owe to lenders - be it a credit card or a personal loan - and set about prioritising payments in order to clear them. If you can afford to pay a little extra each month it's best to do so, for not only will you decrease the outstanding balance, which will no doubt help your interest payments, but by taking steps to alleviate debt problems, you'll help to make your credit record seem more attractive to potential lenders in future.
If you're looking into debt consolidation plans, be sure to read the paperwork carefully, and be sure that you have enough money left each month to afford the repayments, or you could run into further problems. Shopping around for debt solutions is an essential part of the research, but if you have any concerns about your existing levels of debt, or want to talk to someone about money worries, seek advice from your local citizen's advice services. |
