Taking control of your finances can seem daunting – especially if you struggle to repay your debts each month. Fortunately, there are several budgeting tricks you can use to reduce your outgoings and start repaying your debts.
A budgeting planner contains all your debts and outgoings. For example, this should include rent, council tax, loans, and subscription fees. In short, anything which you get charged for on a monthly basis will get listed here.
Once you have a clear idea of how much you need to spend each month, then you can look at ways to free up some cash for these expenses. For instance, a gym membership can vary in cost but around half of these are purchased but not used regularly. Consequently, if you’re struggling to get to the gym, it might be worth closing your account.
Instead, there may be an opportunity to look at alternate free ways of exercising, such as jogging or cycling.
Many households throughout the UK unfortunately waste food. To avoid this, consider writing a list and preparing your meals for the week. Furthermore, combine with the budget planner to identify how much you can reasonably afford to spend and look at cutting costs where appropriate. You could be surprised at how much you can save through one of the smaller, budget supermarkets.
Budgeting this way will help you get a clear idea of how to comfortably spend your money. Cutting back on the non-essential purchases and finding cheaper deals will give you more funds to repay your debts. By making the regular repayments, you should eventually see some real improvements in your credit score.
If your debts are really getting on top of you, then a good solution might be to apply for a consolidation loan. This can help you pay off your existing debts, leaving you with only one manageable monthly payment to complete every month – making things much easier.
To find out more information about this, talk to us today. We’d be happy to discuss your circumstances and find a solution which is right for you.