How to avoid further debt


How to avoid further debt

How can I keep my spending in check?

One of the simplest ways to keep an eye on spending is to stick to a budget.

Taking a step back to review your current financial situation is always worthwhile – and it can help you avoid or address any debt problems before they get out of hand. If you don’t make time to regularly check in on your money, it can be tricky to keep track of how much you have going in and out each month – particularly when you have multiple direct debits, standing orders and recurring card payments.

Having a better understanding of your financial situation means having more control, but where do you begin when the time comes to crunch the numbers?

The good news is you have options. Your mobile banking app is a great place to start – and there’s plenty of clever tech available for free to help you budget, save and keep an eagle eye on where your money goes every month.

Or you could always go down the traditional route. The simplest way to manage your money is to sit down with your bank statement, a pen and a calculator to work out where you’re spending – and where you can cut back.

However you plan it, a well-considered budget is your ticket to financial stability. Whether you prefer to review your spending weekly or monthly, taking a moment to acknowledge all your outgoings will allow you to spend your disposable income more wisely and live within your means.

How important is it to save?

Saving can help you prepare for the unexpected – but it involves a bit of discipline. You have to be willing to forego a few of life’s little pleasures to safeguard your financial future.

Studies show that the most effective savers are those who save small, affordable amounts every month rather than those who attempt to put away larger chunks of their disposable income. If you get into the habit of saving little and often, it’s surprising how quickly your money will grow.

Think of your savings as your umbrella for that unavoidable rainy day. Knowing that you have an emergency pot of money gives you peace of mind. and buys you a little time and breathing space if you ever have an issue that limits your income or seriously affects your outgoings.

Why should I be wary of taking on credit?

It can be all too easy to think of credit as a way of covering the cost of a luxury purchase or treat. Although one-off outlays may be manageable, thousands of people find themselves turning to plastic just to make ends meet every month.

When you’re struggling to make your paycheck stretch, payday loans, overdrafts and credit cards can seem like an easy option to get you through. However, it’s important to remember that they’ll only add to your problems and can make the next month even harder to manage.

If you’re facing financial distress, it can be hard not to see beyond the short term by turning to credit for support when the going gets tough. Take a step back and remind yourself that credit is just an additional cost you’ll have to cover later. Instead, consider tightening your belt to avoid sleepless nights in the future.

How important is it to know where my money goes?

A recent study highlighted that more than half of adults aren’t aware of how many direct debits and standing orders they have coming out of their bank account each month. Across the country, billions of pounds are being wasted on direct debits for services that are no longer used.

From defunct gym memberships to lesser-used streaming subscriptions, ditch what you’re paying for if you’re not using it. This is where a well-planned budget can help highlight more frivolous or empty spending and encourage you to become more frugal.

What do I do if I’m already in debt?

If you’re living with debt the most important thing to remember is that you’re not alone. You’ve taken the first step by visiting the Carrington Dean website. Now we can get started with helping you find a debt solution that suits your situation.

As Scotland’s debt specialists, we understand that sometimes opening up about your finances isn’t easy, but we know for a fact that once you do, everything will change for the better.

You could write off up to 75% of unsecured debt with our debt assistant.

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