We often hear stories of doom and gloom about the amount that personal borrowing has increased by and how much debt we all have. Come just after Christmas, this can seem even worse, especially if you used a credit card to help cover those seasonal costs. But it can also be a motivator to spur you into starting to sort out your finances this year.
Look at your debts
A good place to start is those debts – carry out an assessment of what you owe to whom. Often, we take a credit card or bank loan because it has a certain fixed term benefit, usually a low interest rate. But then when this ends, we forget and can be paying a lot more for our debts than we realise. So one good move is to look at your cards and see if you can do a balance transfer to another company with a better deal.
If you have a number of small debts that are costing you a lot of money but that you plan to clear next payday, then short term loans can help. Simply compare the interest on the debts you have versus the loan to see what works out cheaper and don’t forget to look at any penalties for paying off a debt early to consider these too.
Look to increase your earnings
Sure, we all want to earn more money but for many employers, pay rises are a thing of the past or are minimal at best. If you need to increase your earnings, then it can be best to look at other opportunities. It also works for stay at home mums who have the kids to look after but also want to earn some money. There are lots of earning opportunities for mums that allow them to balance their life without the need for mums going back to work full time and using babysitters for the children.
No-one wants to live without having some treats, some fun or doing things they enjoy but it can be a wise move to look at your spending and see if there are any areas that you can make changes. Something as simple as cutting back from three takeaway meals a week to two can save money and the extra food you buy won’t cost as much as the takeaway.
Another idea is to look out for vouchers and deals. Whether it is for food, for holidays, activities for the kids or anything else, there are loads of voucher sites out there that can help offset the cost of the things you like to do or the food you like to eat.