(ThyBlackMan.com) If you are finding yourself in the red at the end of each month, the chances are that you are spending some sleepless nights worrying about your finances. To get all of your monetary ducks in a row, you need to be proactive rather than burying your head in the sand and ignoring bills and requests for payments. You don’t want to make things worse by receiving a court summons for late payments or forfeiting your mortgage or rent. To become debt free, you need to follow this guide and enjoy a more comfortable financial existence.
Personal Budget
Before you do anything, you need to create a personal budget. If you need help to do this, there are plenty of free services available locally to help you fill out a simple template. Consider every tiny expense and list it from a chocolate bar to a newspaper. When you list the little things, you will soon see the shavings you can take off your outgoings. Any money that you then have left over at the end of every month can be utilized to top up your retirement fund. A personal budget can help you to be more disciplined with your cash. When you next walk past a cafe and you’re tempted to pop in for an almond croissant and a latte, you will think of your budget and paying off your debt.
Using Credit
Not all credit is bad. It is how you manage this credit that can sometimes get you into a tough situation. You may need to think about your credit cards and work out a way to pay more than your interest back every month. Look at transferring your balance onto a credit card with zero per cent on balance transfers. This way, every payment that you make on your card each month will be paying back your capital; your actual debt. When you see your balance decrease each month, you will find the motivation to continue with your repayments and you will stick to your budget.
Think Smaller
Just because you need to pay off debt doesn’t mean that you have to live like a hermit for the next few years. Consider your hobbies and whether you can scale them back a little. If you love going out for dinner with pals, scrap the high end restaurant and opt for the local bistro instead. If you adore heading to the movies with pals, don’t go on the weekend when the tickets are expensive. Ensure you go to the cinema on a Wednesday when tickets can be half price.
If you are in need of a holiday, don’t think that you need to opt for a staycation. While the Maldives or a round the world cruise may be a little out of reach for the moment, you can still head out on a road trip. This is a great way to spend quality time together as a family, and you can enjoy the joys of camping. Alternatively, you can hot foot it on a shorter holiday. Instead of a fortnight, take a jaunt for a few days or a week.
It may seem hopeless, but paying back your debt isn’t impossible. Follow this guide and you will become debt free.
Staff Writer; Brian Jones