As the end of the year quickly approaches, it’s that time of year again when we start thinking about making new resolutions. Along with the normal ‘eat less and exercise more’ resolutions that are commonly thrown around, we urge you to think of financial resolutions too.
2016 could be the year to say goodbye to any frustrating debts that you have, as well as put a lid on any unhealthy spending habits that really aren’t helping you out.
So when you raise your glass to toast the arrival of 2016, give a thought to how you’re going to get your finances in order and adopt a healthier relationship with your money.
Set a Clear Financial Goal
You should aim to set yourself a financial goal for the entire year – something you want to have achieved by the end of next December. It can be as big or small as you like, such as wanting to pay off a credit card or wanting to put together a deposit for a home. We think it’s best to have a goal figure in mind – but don’t overstretch yourself. If it helps to write things down, you should actually draft a plan – it’s good to have something physical to refer back to.
Prioritise Your Debts
Write down a list of all your debts. This includes anything that you have on credit cards, anything you owe on things like store cards, any outstanding loans or payments – basically anything that you owe money to. You should then put them in order of interest rate – which are you paying more interest on? The ones with the highest rates (usually credit cards) should be the ones that you attempt to pay off as soon as possible. You can make your way down the list as you go through the year.
Take a Good Look at Your Spending Habits
We can’t always stick to a strict budget – life wouldn’t be too much fun if we did. However, if you take a look over your spending habits during the whole of 2015, is there anything you notice that stands out as a warning? Don’t guess or estimate how much you spend on a weekly or monthly basis – go through your statements and try to work it out. This will allow you to realise what you need to cut back on. Do you eat out too much? Or maybe you spend too much on the weekly shop? Make it your resolution to cut back.
Arrange an Appointment with a Financial Professional
It’s not always easy to spot your own bad habits – especially when it comes to money. This is a problem when it comes to making changes – how can you change something that you don’t know you’re doing? Therefore it’s a good idea to seek out the help of a professional. They will advise you on where you’re going wrong, as well as help you come up with some solutions that will allow you to make steps towards being debt free.
If you’re struggling to get your debts in order, please don’t hesitate to contact us here at Debt Advisory Services (Scotland) Limited. We have an experienced and professional team who can offer you advice on debt solutions within Scotland. They will be more than happy to offer you confidential advice that will help you find the best solution for your individual situation.
Just give us a call on 0800 011 2322 and a member of our team will be happy to make you an appointment.