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 and reviewing your current financial situation can be scary but it is a vital step when avoiding or, indeed, addressing any debt problems. As the pace of life continual increases, it can be tricky to keep track of how much money you have going in and out each month – particularly when direct debits, standing orders and recurring card payments make your money vanish before you’ve even set eyes on it.

Having a better understanding of your financial situation means having more control, but just where do you begin when the time comes to crunch the numbers? Of course, in this day and age there are mobile apps with all the bells and whistles designed to help make sense of your finances, but the simplest way is to sit with a pen, paper and calculator as you work out what goes in your bank account and what goes out.

A well planned and considered budget is the ticket to financial success. No matter whether you plan weekly or monthly by taking a moment to acknowledge everything coming out – from your rent or mortgage to council tax, bills and travel costs – will allow you to plan for your disposable income and ensure you don’t live outwith your means.

How important is it to save?

They say expect the unexpected and you might just be prepared, and savings play a vital part in that. Saving might seem like a hardship at times, especially when faced with the decision of foregoing one of life’s little pleasures in favour of your financial future, but it doesn’t have to be complicated.

Studies show that the most effective savers are those who put away small, affordable amounts each month rather than those who struggle after outing away a large sum of disposable cash.

Think of a simple budget as your umbrella for that unavoidable rainy day and use it for a little breathing space should you ever have an issue that limits your income or seriously affects your outgoings.

Why should I be wary of taking on credit?

With spending easier than ever before it can be all too easy to think of credit as being a way of covering the cost of a luxury purchase or a treat. Although one of purchases may be manageable, thousands of people find themselves turning to the plastic to make ends meet each month.

When you’re struggling to make a pay cheque stretch payday loans, overdrafts and credit cards can seem like the only option to get through, however, it’s important to remember that they’re likely to only add to your problems, making the following month harder to manage.

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

How important is it to know where my money goes?

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

From unused gym memberships to an online TV streaming subscription you no longer need it’s important to review what you’re paying for and what you’re actually using. This is where a well-planned budget can help highlight frivolous spend and encourage you to become more frugal and not afraid to make a few vital cuts.

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. There are people just like you across the country facing money worries and lying staring at the ceiling at night wondering how they’re going regain control.

You’ve taken the first step by visiting the Carrington Dean website, now let’s get started and help you find debt help that suits your circumstance. As Scotland’s debt specialists we understand that opening up about your finances isn’t easy but promise 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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