Help!!! I’m in debt and can’t get out


If you are anything like me you understand what debt is, you get that there is something called debt management and you understand the state it can get you into, but you always think that you will never be the one to end up in court or have to class yourself as bankrupt, NewsFlash – those red letters are not going to stop coming through your letter box.

With the current financial situation, companies are more desperate than ever to get their money from you, but they are also aware that money is tight for you too, so this is where you can both win, by doing some debt management of your own.

You need to bite that bullet, open the red letters and see how much you owe and who to, look at your bank account, look at the amount of money you have coming in and look at the amount you have going out and what it is going out to…. is it all meals out, treats at the supermarket and shoes? (I know mine mainly is).

Then call up the company, you may owe them £750.00, it’s a lot of money to you and maybe not so much to them, but why not find a way round this? How about you offer to pay them  £50 a month for 1 year. This would give them less than the £750 they want but they would get it back and they do not need to fork out on sending more letters and getting debt companies involved… and you start to see a light at the end of the tunnel.

There we go, one step of debt management completed!

It may be rare but at the end of the month, just a few days before pay day you notice there is money in your account, you know that you have no plans or need for that money until pay day and if it stays in your account it could get spent on anything (shoes or meals out or treating friends)!

So, go to the hidden red envelopes in the bottom of that drawer, pick one at random and phone them up and give them the payment over the phone. Do not pass go, do not withdraw money from the account for any reason and once more, you are one step more into debt management – easy hey?

Then slowly but surely, the red envelopes will start to go down, less and less will come through the door and you will loose this weight off your shoulders that is bringing you down and potentially effecting your work life too.

Then, when all the red envelopes have gone have a look at your bank statement, look at all the money you have used for debt management, and put this money into a savings account, you have done without that £50 a month for the last year, so why not set up a direct debit straight to your savings account? Look how much you can save, by adding those extra pounds floating around in your account at the end of each month before pay day!


Tips That Will Help Your Debt Management

Whether you know a little or a lot about dept management your personal finances, you can always benefit from knowing a little bit more. Education is key when it comes to controlling your money. The article below discusses tips and advice to help you stay on top of your personal finances.

One effective way to keep your personal finances in good shape is to pay off your credit card balances in full every month. Paying only the minimum required can lead to costly finance charges that can add up to a significant amount of money. Paying your balances in full is a smart way to manage your personal finances.

Do not use the ATM. It is too easy to forget how much money you are spending, when you are withdrawing and paying with cash. Instead, make yourself a budget and use your credit or debit card, so that you can track your expenditures. You will find that you spend much less this way.

One of the best ways to set a strong financial foundation for the future is to engage in safe driving. The safer you drive, the less accidents that you will get into, which will reduce the costs of repair and give you the best possible insurance rate for your situation.

If you smoke, you should take the time to calculate how much this habit is costing you. You could save thousands of dollars every year if you quite smoking. Switch to a cheaper brand, reduce your smoking or look for alternatives such as the e-cigarette if you want to start saving money.

Make sure to save for your child’s college education now, even if they are not old enough to walk. The cost of schooling is constantly going up, so saving for your child’s future now is a good way to stop them from having so much debt when the time comes.

If you are plagued with credit accounts that have been turned over to collection agencies, you can save money by negotiating a smaller settlement to pay them off. Many collection agencies would rather get something for the account, than paying the high cost of attorneys and court fees trying to collect their money.

Start cooking your meals at home. It isn’t just healthier to make the switch from take out to home-cooked meals; it’s also easier on your wallet. Stop wasting money on fast food establishments and restaurants. Start cooking your own meals, saving the leftovers for later. With the wide variety of recipes out there, even poor cooks should be able to find something they can cook and enjoy.

Try to avoid eating out. It may seem like a good idea to go to McDonalds and order something off the dollar menu, but those things add up. Often it’s much cheaper to make a sandwich or cook dinner at home. And whenever you cook, if there is food leftover, save it to have as a meal another time.

Join a warehouse club store. These stores charge an annual fee, but if you shop wisely at these stores, the fee will pay for itself. When shopping at these stores you can save a lot of money by buying items that you commonly use, in bulk. Toilet paper and paper towels are two items that will save you quite a bit when buying in bulk.

Do not make any financial decision that are based on conversations that you have had with your neighbors. This is not a good idea because you may end up losing your money and may want to blame them for that. It would make things pretty awkward between the two of you after that.

A great way for you to improve your financial situation is to stick to water when you are consuming beverages. Water is one of the best things that you can put in your body and also can do wonders for your budget, as you can get this drink for practically nothing.

When going food shopping, be sure to check for items that are on sale in the store. Obviously, you won’t gain anything from buying things that you wouldn’t normally buy, but it can be useful if your regular items are on sale. This can save you a lot of money on your food budget.

To save on your grocery bill, don’t limit yourself to just one grocery store. Be sure to get copies of all local store ads and study them carefully. Make a list for each store, and what you will buy there based on the weekly sales ad. Make sure to shop stores that are close together so that you can go to more than one store, saving your precious gas!

Take a look in your bathroom at some of the toiletries that you consistently purchase, and see if there are any items that you can get at a fraction of the cost. Try different types of products to see if there are any that give you the same results at a lower price.

Cut your monthly shopping bills by keeping a list. Whenever you want to buy something that is not an absolute necessity, write it on your list and wait a day or so. If you still want to make the purchase, and it fits within your budget, go ahead. By waiting, you can help put a stop to impulse purchases.

Think about setting up a car pool with people that you work with. If several of you live in the same area, this is a great way to save money on gas. It has the added benefit of possibly improving your relationships with the people that you work with, as well.

Now that you’ve come to the end of this article, it is clear what you need to do to manage your personal finances so that they don’t spin out of control. Take what you’ve learned here to heart, and apply the information as necessary. You are now on the road to being financially independent.

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