Some believe that money makes the world go round – many disagree. But most people can surely agree on the fact that when money is tight, it can put real pressure on everything: your relationships, career and family – and have a real negative impact on your life. With the economy in an ongoing slump and more and more people struggling to make their money go further, here is some advice for dealing with debt.
1. Cutting back
There are many ways to reduce outgoings within the home. Think about if you really need more than one car, buy food in bulk and consider walking as opposed to driving to save on petrol. With regards to bills such as electricity, car insurance and mobile phones, shop around to see if you can get a better deal. Use price comparison sites or go into your local phone shop to see if they can offer you a better deal. These may seem like small things, but could add up to huge savings.
Sometimes it can be difficult admitting that you need help but think about whether there is someone in your family that might be willing to lend you some money. If you explain your situation and let them know how it is impacting on your life, they may be able to help you.
3. Personal loan
Banks offer personal loans, but these are generally only for people with good credit ratings. Remember to shop around for the best interest rates and the most flexible repayments to suit you and be sure that you’re in a position to be able to pay it back. Loans, depending on amount, can be repaid over a number of years.
4. Payday loan
If you are thinking of taking out an instant cash loan then there are a few things to consider. Think about when you are likely to get your next have money (e.g. your wages) and see if that ties in with the repayments. Interest rates can be high on these types of loans and remember the quicker you pay it back, the less it will ultimately cost you.
One option when you need to free up a large sum of money is to consider re-mortgaging your house. However, this can be a big decision to make and you need to seriously consider if you will be able to afford the repayments.
Money worries can take a real toll on you, but remember that there are people out there who will want to help you. Telling a family member about your money troubles could really help, so don’t keep it bottled up while things spiral out of control. For more advice and tips about managing your money, visit the Money Advice Service website or Citizens Advice.