Staying out of debt with the right debt advice
In times like this, staying out of debt can be particularly difficult. Over the past two years, costs of living have been rising fast, and the recession means many people`s incomes have dropped. Most of us have been affected by the economic downturn in some way - and many will experience debt problems at some point as a result.
What can I do to stay out of debt?
There are a number of things you can do to reduce the risk of falling into debt - and here are a few tips you might want to follow. If you want more information on these pointers (or any other financial issues) you should get some professional one-to-one debt advice.
Stick to a budget
Many people spend their money as they go along - getting paid at the end of the month, and then paying their bills and other costs as they come up. But without following a plan, this can easily cause you to fall behind later on in the month. If you`ve spent most of your money but still have bills to pay, you may have to get into debt to cover your costs, and this can easily lead to problems.
By creating a budget that sets out how much you need to put aside for your essential commitments, you`ll know how much you have left to spend (or save) as you wish.
Credit cards can be a useful tool when used carefully, but it`s very easy to let credit card repayments slip for a month or two, and the debt can grow faster than many people realise. The interest rate on a credit card is often quite high - the average is currently around 18% - meaning that you could end up having to repay significantly more than you originally spent.
A more sensible approach is to spend only what you can afford today - i.e. with cash or a debit card - and keep your credit card for emergencies only. That way, you`ll avoid overspending, and you`ll have some credit available to fall back on if anything unexpected crops up.
Shop around for everything
Whenever you`re looking to buy something, don`t just buy it from the first place you find it. This applies to tangible goods such as clothes and electrical items, but also to utilities such as gas, electricity and broadband connections.
There are often savings to be found, particularly online - and even if these savings are only small, they could all add up and help you to stay out of debt in the long term.
What if I do get into debt?
If you do ever find yourself struggling with debt, you should get debt advice from an expert as soon as the problem starts.
Drawing on their expertise and experience, a professional debt adviser can recommend the best course of action for clearing your debts. Whether it`s a new approach to managing your finances or a more specific debt solution, your debt adviser can give you the guidance you need to plan your way out of debt.
Back to debt consolidation blog home
Carlton House, Vere Street, Salford M50 2GQ. Company registration No. 4348410. Registered in England and Wales