Get Your Finances Back on Track in the New Year
The latest trend of Black Friday, then the Christmas period, followed by sales means most people start a new year with their finances in a bit of a state. So what can you do to get things back under control and makes sure there isn’t too much month left at the end of your salary?
Understand Your Debts
The first thing to do is to sit down and work out how much you owe and who to. You should also look at how much interest you’re paying, the debts with the highest rates are the ones you should look at paying off first. If you have large debts that you’re struggling to pay you may be able to use an Individual Voluntary Arrangement to restructure them.
Playing your Cards
If your credit rating is good it’s worth looking at credit cards that offer balance transfer deals. You can use the zero percent period to pay off some of the debt without having to worry about interest building up.
Get a Credit Report
Your credit report is used by banks, loan providers, phone companies and more to determine if you’re a good credit risk. You needn’t be in the dark about what it contains, as there are a number of companies that offer to provide you with your credit report, usually for a small fee. Understanding the things that make up your report can help you to improve your score.
Ask for help
Many people struggle with debt on their own and can end up getting themselves into even more difficulty. Don’t be afraid to ask for help, talk to your creditors if you know you’re going to have difficulty paying, or contact Carringtondean to discuss an IVA among others to help you restructure your debt.
Shop smarter
In our modern world of instant payments and easy credit it’s very easy to spend too much money. Before you buy something ask yourself if you really need it. It might be a replacement for an essential item like a washing machine, in which case fine. But if it’s an impulse buy will you really use it or will it end up in a charity shop in a few months? If you decide you do need to buy, then always shop around to see if you can get it cheaper.
