September 25, 2012 by Agency Reporter 3 Comments
Minimising debts can occur through a
combination of cutting back on outgoing expenses, changing your spending
habits and cutting out high interest loans and credit cards. Bad money
mismanagement can leave a lot people sliding gradually into debt. Many
people know that to cope with the rising financial costs in society they
will have to accumulate a certain amount of debt, but keeping debts at a
minimum is vital. Minimising debts will take a lot of effort and
willpower but will be worth it in the long run.
Household debts
Household expenses are a priority and
there is no way to avoid them. There are ways to save on household
energy expenses such as gas and electricity; if you get your energy from
different suppliers then combining them could save you a lot of money
per year. Energy companies are in competition with each other and you
may find you get a better deal by shopping around and switching
companies.
Other household expenses that are
priority will be items such as the weekly food shopping bill. The only
way to minimise the cost of these items will be to shop around and find
cheaper suppliers. The main aim of reducing your household bill is to
free up some of your income that can then be used to pay off serious
debt.
Seeking financial help
You may have debts that are spiralling
out of control to the point where you are paying a large amount of your
monthly income towards debt. It may be the time to seek help from a debt
counselling service that will be able to talk to your creditors on your
behalf and minimise your debts.
Bank charges
If you find that you are always sliding
into the red due to bank charges and penalties being applied to your
account then you will be paying a lot of money to your bank. Try phoning
your bank, explaining the situation, and reclaiming the charges. If
your own branch does not give you back the charges then go over their
heads to the customer relations department at the head office. They will
look into the problem and will usually offer a repayment as a gesture
of goodwill.
Bank charges on overdrafts, missed
direct debits and standing orders are profits that go directly to the
bank. These charges can mount up in no time and can seriously damage
your finances. The best way not to have charges applied is not to go
into the red.
Pay with cash instead of credit
Paying with cash instead of using your
debit or credit card is the best way to keep track of your finances.
Paying by cash means that you will need to go to the cash machine and
check your balance; therefore you are more likely to know when you are
near your limit. Paying with cash also means you are unlikely to splash
out on impulse buying on your credit card.
Minimising debts can be achieved with
some astute financial planning and budgeting but it will take time and
effort. Debt is easy to achieve but never easy to get rid of, and
curbing the desire to spend is difficult for some people. Do not be
disheartened if you slip up now and again; think of the process as a
long term plan that will eventually bring you to a debt free existence.
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