Nobody aims to get into debt, but such things are a sad fact of life. Thousands of people struggle with debt in the UK every year, and if you’re one of the people who are fighting to stay afloat then it can seem like you’re swimming against the tide. However, there are actually a number of small ways to minimise the risk of debt in your life, and, although these practices may not seem like much, they really can help to avoid the threat of going into debt.
Budgeting
Keeping a monthly budget is an essential habit to get into. You need to keep track of both income and expenditure in this way, and also take into account what you know you’re going to need to expend at specific times of the year (i.e. birthdays, insurance payments, etc). Dividing all of this up to establish a monthly budget may seem like a chore, but it will really help you to stay on top of things.
Prioritising
Obviously, some things should be more of a priority than other things. You should always set enough money aside to pay your essential bills, and you should also try to do so on time wherever possible. Taking risks with things like council tax just isn’t worth it. If you get into the habit of paying for the most important concerns first, you’ll minimise the chance of an unexpected debt accruing.
Saving
You should be looking to save at every possible opportunity. This could take the form of trying to cut back on unnecessary expenses, shopping around for the best deals or utilising price comparison websites, doing DIY jobs yourself, or simply putting aside any money that you don’t need to spend to build up some emergency savings. Whatever habit you adopt, all are valuable.
Credit
Credit cards are common causes of financial troubles, so if you have one you should use it with caution. Don’t get into the habit of purchasing things that you can’t instantly afford, and always pay back your balance as soon as the opportunity presents itself. Otherwise, interest will soon begin to build up. Treat your credit card like a debit card and you won’t go far wrong.
When you are struggling to become debt-free, and you simply can’t see the way out, you can trust us to be able to help you to take the right steps, and ultimately free you from your debt. To find out more, please don’t hesitate to contact us by calling 0800 011 2322 today.