Collaborative Post
It can be challenging to cope with the current global pandemic, especially if you are of an anxious disposition. You might already be stressing about the stability of your job, your home renovations and the health of your kids. Add to this the threat of coronavirus and you might be more concerned about your finances than ever before. You might be used to using credit cards, you might have a personal loan, and store cards may the normal way to pay for your clothes. This might see you slipping further into the red by the end of each month. To tackle this during a pandemic may seem like madness. However, really there is no better time. If the threat of redundancy looms and you are sending more time at home because of lockdowns, what better way to focus your mind than to clear your debt and get back in the black?
Getting back in the black means making your debt manageable rather than all consuming. When you take out a credit card, you should be able to clear the balance at the end of each month rather than eating into your credit limit continually. However, sometimes life gets in the way, you have to tackle a few curveballs and your finances slip out of your control. Get your head out of the sand and get clearing your debt for the sake of your sanity. Read on to find out how.
If you are in a lot of debt, you might panic about how long it is going to take you to clear it. Don’t worry. Even if it takes a few years, you need to keep your eye on the prize which is financial freedom. If you do have credit cards, think about transferring the balance onto a new card that will allow you to pay back purely the capital you owe rather than any interest. When making payments, try your best to clear more than the minimum payment every month. And never miss a payment. This can quickly nosedive into numerous forfeits leading to a poor credit rating. If you are really struggling, consider getting in touch with your credit card company and working out a repayment program.
If your credit rating is sound, you may be able to apply for a personal loan. This is a great idea if you have lots of little payments coming out of your account every month. This can be very confusing. Instead, one manageable monthly repayment can consolidate your debt and enable you to see the light at the end of the debt repayment tunnel.
Photo by Tobias Barsnes on Unsplash
Shopping Around
There are some payments that are crucial to your life. Your home loan or rent payment, bills, and car insurance need to be paid so shop around to find the best deal. There are hundreds of car insurance providers so let the Insurance Doctor do the scouting around for you. They will look into your requirements and source the most reasonable bespoke deal for you. The dame can be said of your home insurance or any commercial insurance you need.
Rather than sticking with your utility provider, head onto a comparison website and see if you can get a better deal for your electricity and gas bills. By decreasing your expenditure, you can siphon more money towards your savings or debt repayments. Getting back in the black doesn’t always mean paying off a credit card and could simply mean saving cash on everyday outgoings.
Budget
Set up a spreadsheet to help you budget for every week. List every expenditure and cross reference this with your wage and any other money that lands in your bank account. You might want to download a template for free and start populating it. This means that you can monitor your spending. Do you really need to buy a caramel swirl pastry on the way to work every Friday? And do your kids really need to have so much data to eat into each month. Any savings that you can make should be welcomed with open arms. As you begin to see your expenditure decrease and your savings increase, you will feel motivated to continue with your budget.
Gaining control of your finances can be challenging. To improve your mental well being and to feel more comfortable at the center of a global pandemic, you need to analyze how you manage your money. By following this guide, you have every chance of getting back into the black no matter how long it may take.
