No matter how much you earn, there will always be a tendency for some of us to spend up to the limit, and to find money tight at the end of the month. Even if you’re frugal, don’t buy all the latest gadgets, and don’t have an unshakeable devotion to labels, there will always be that unexpected bill that takes your very last penny. Although you might think that’s fine, you’ve got the money to pay for it – just – the fact is that if another unexpected bill hits your account before your salary does, you’ll be in the red, with all the accompanying bank and borrowing charges that may bring. Worse still, if your bank decides to refuse payment, your credit rating will take a hit too. Try these tips for living within your means and sticking to a budget.
Leave your cards at home
If you have a tendency to impulse buy, or to put your card behind the bar on a night out, you’ll be no stranger to spending too much. A better solution is to give yourself spending money and to leave the plastic behind. Once your cash has run out, not only can you not spend any more, you can’t go to the bank to get another withdrawal. Although this won’t entirely solve the problem if you’re also a spendthrift online, it will limit the damage done.
There will be occasions when you have to borrow money to meet all your outgoings. However, unless your missed payment puts you in danger of having your utilities cut off, or of losing your home, it’s better to ring your creditors and ask for a few more days to pay rather than racking up substantial arrangement fees and interest charges. As emergency borrowing tends inevitably to lead towards payday lending, these costs can be astronomically high, and can lead to a borrowing cycle where you are taking out another loan to pay off the previous one, and which can be difficult to get out of.
Although you may feel that overtime or a second job are cramping your style, think about the freedom and choices the extra money will give you; an extra pot of cash in your bank account each month means never having to worry about that broken down car, or that urgent new washing machine.
If, however, you live in Scotland and you find yourself in debt you just can’t see a way out of, a trust deed may be a sensible option. A company like trustdeedscotland.net will negotiate with your creditors for you, and in many cases can wipe over 50% of your debt out, and reduce your payments considerably. If you have unsecured debts that are over £5000 and getting out of your control, a trust deed can help stop sleepless nights and the feeling that you will never be free of debt.
Even if your debt is at a manageable level, it’s worth putting provision in place to avoid financial disaster.