Although you may try your hardest, it’s easy to lose track of your finances and get yourself into debt. Whether you miss a couple of payments or you’ve been struggling for years, most people will go through issues when it comes to debt at least once in their lifetime. Whilst it may seem impossible to get back on track, there are lots of different things you can do to help. With that in mind, here are 7 ways to help combat debt and organise your finances:
Set Yourself A Monthly Budge
The first thing you need to do is ensure you’re setting yourself a monthly budget. This means working out how much you’re going to earn and what your bills and outgoings cost. Once you’ve done that, you’ll be left with your disposable income for the month. Whether it’s a large amount or enough to get you by weekly, the way you budget your disposable income be the same as your bills. Think about what you want to spend it on, how much and whether you’re going to put any into savings. For more information when it comes to setting a budget, you can visit this site here.
A Spreadsheet To Track Your Finances
To help keep track of all of the above, a spreadsheet is the best possible option. Not only will it allow you to see all of your incomings and outgoings easily, but it will give you a chance to make instant changes to your figures without having to work out any complicated formulas. Although it may take some time to set up, it’s the best way to be able to look at everything at a glance.
Cut Down On Eating Out and Treats
Although it may seem as though it’s only a small amount each month, the amount you spend on eating out and treats can really start to add up. Whether you order takeaway once a week or eat out two to three times a month, you could end up spending 100s on meals that you don’t *really* need to. Whilst it may be nice, focussing on the more important aspects of your finances should take priority. If you want to continue to treat yourself, try limiting your meals out to one a month.
Work On Building Your Credit Rating
It may take a number of years to get sorted, but building your credit rating is one of the best things you can do if you want to be able to purchase things on finance. If you have had poor credit in the past then you may have a low score, but paying your bills on time will allow you to improve it over time. Try to avoid missed payments and getting any bank charges, keeping track of your improvements on a credit control site. For more information about increasing your credit rating, you can visit this site here.
Prioritise Your Debts
If you have lots of debts to pay off these should be the first things that you’re focussing on. Whilst it may be tempting to start buying yourself treats and booking holidays as your cash flow starts to increase, your bills should be your first priority. Once they’ve been paid off in full, you’ll be able to focus on the things that you want. It will be hard, but it will definitely be worth it in the end.
Consider An IVA Agreement
If you’re really struggling to pay off your debts and think that there is no easy solution, why not consider starting an IVA agreement? An IVA agreement is an arrangement that will only allow you to pay what you can reasonably afford when it comes to your debts. Rather than paying off lots of debts individually, you will be paying off a monthly balance to your consolidator. For more information, you can find out about IVAs here.
Sell Some Of Your Belongings
Finally, a great way to raise money to go towards paying off your debts is to sell unwanted belongings. Whether it’s the furniture you no longer use, clothes you no longer fit in or electronics that you have upgraded – you will be surprised how much you can make selling your own belongings. Consider setting up an eBay account for an affordable, effective way to sell the belongings you no longer want.
Are you looking to get out of debt and sort your finances? What changes can you make to your lifestyle to help? Let me know in the comment section below.