Fix Your Finances
Is your credit card debt eating up your salary? Are you having trouble with your expenses and sticking to your budget? Sounds like you’re in need of help and fast!
In this modern era where everything can be bought with a swipe of a card, spending becomes a little bit more difficult to track. Here are some ideas to help you get from broke to debt-free and to buy you peace of mind in no time.
Stop adding to your debt. If you want to get out of the situation, stop piling up additional debt. You can never resolve the issue if you don’t cease the cycle.
Discern needs from wants. Ask yourself first if what you’re about to buy is essential or if it will just collect dust in the long run. Things such as gadgets depreciate easily so if that 36” plasma TV is really not a priority, don’t risk it!
Consolidate your debt. If you have more than one credit card, consider debt consolidation. Inquire from your creditors the best assistance you can get from them, most credit institutions have programs to help their customers pay off their debt with less interest, fee waivers, or zero-interest installment plans. Choose to do a balance transfer to the lower interest-bearing card, that way it’s easier to manage and would save you some money. Be careful with debt consolidation agencies, some actually charge exorbitant fees so try scouting first before entering a contract.
Good debts. If you are wallowing over credit card debt, aim to pay it off as soon as possible. Credit card interests vary from 20%-30% per annum and can really take its toll when you’ve got a high balance. One solution to pay off your credit card debt would be to look into lower rate personal loans to pay it off. Check with your bank and check if you are eligible for such services.
Live below your means. Simple and straightforward, never spend what you don’t have, or better yet, never spend all. Always leave room for savings every payday, small earnings can go a long way in the future.
Consider a second job or a new business. Try scouting for part-time jobs or online careers when you can, or you can turn your hobbies into a second career. Who knows, you may even succeed better financially in doing something that you love.
Now, once you’ve got your finances back on track, invest your earnings into plans that you can benefit from in the future. Focus on more important things like healthcare and insurance, those that you and your family can use in the future.