The beginning of a new year will, to many, also mean an opportunity to get back on track. Sure, you might have overspent a bit over the Christmas period (I know I have) and neglected your budget but you will still be able to make this year a lot better in terms of finances as long as you get started right now. I know I'm definitely not the perfect person to be giving financial advice. But I know what it's like to feel like you're swamped in debt, constantly owing money and then having nothing left out of your pay for yourself!
The sooner you’re able to make these
changes, the easier it will be for you to follow through with it and put the
days of debt behind you a bit sooner. It won’t be something that can happen
overnight, though, but with a bit of perseverance and a willingness to spend
much less than you used to, you’ll have things back under control in no time.
Here is a handful of tips to get your
finances back on track and put a smile back on your face whenever
you log into your bank.
First: Creating a realistic plan
One of the main reasons why so many people
seem unable to get out of debt and breathe some life back into their
finances is because they’re not able to stick with their plan. It’s
easy enough to come up with something that makes you see the light at the end
of the tunnel; pay a bit more off each month and you’ll be able to avoid those
payments a bit sooner, right?
The problem with this is, of course, that
the plan is unrealistic and they end up with skipping payments instead of
following through with it. Now their debt is only growing, the creditors are
becoming annoyed, and you’re ever further away from getting that excellent
credit score you’ve been working towards. I know I've made unrealistic plans over and over again; and guess what? I still have an overdraft 7 years later. The truth is every little helps, so don't be put off if you can't pay off a huge sum of money. It all adds up in the end!
You can have a chat with your bank about
this if you’d like to come up with a proper plan. Call them up or stop by the
bank and you’ll feel a bit happier about the future afterwards.
Next: Can you make any bulk payments?
If you’re able to pay off a larger part of
your debt right away instead of making small ones each month, the creditors
might be willing to write some of it off. They just want their money, after
all, and many debtors before you have tried to avoid their payments completely
- so the creditors will really be quite happy to put the case behind them.
It’s not always that easy to just magic up
a nice lump sum of money, though, and selling your car to pay your debt seems
even more unreasonable. You could consider looking into debt
consolidation with Buddy loans instead but keep in mind that this
loan, just like any other loan, will put you in debt again.
You will only have to make this one
payment, on the other hand, and might be able to get the other creditors off
your back a bit sooner. Just make sure that you stay on top of this payment and
never miss a due date so that you can be debt free a lot sooner.
It's all a bit scary and much too "adult" for my liking, but it is important to sort it all out before it gets out of hand. I know, I hate to admit it, but maybe it is more important to pay off my credit card instead of getting another coat, foundation or lipstick!
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