Tips on Managing Your Money
Tips on managing your money to prevent debt.
- Pay bills by direct debit - most companies will offer you a discount and it saves you having to remember to pay them.
- Organise your paper work - keep checks on your incomings and outgoings and keep a calendar of important dates, e.g. car tax, MOT etc., so you don't forget to pay them.
- Cut up your credit cards - credit card debt is easy to get into, difficult to get out of and is the most expensive way of borrowing. Credit cards can, however, be useful (e.g. for hiring a car), as long as you have the discipline. The ideal solution is to reduce your credit limit to a level you can afford to pay off in full each month.
- Cut back on luxuries - do you really need that new jumper, CD or glass of wine? Set yourself a small budget for luxuries each month and stick to it.
- Don't play the lottery - there is a mere one in 14 million chance of winning.
- Work out in the park - a gym membership can cost from £400 to £1000 a year - do you really make the most of it and get value for your money?
- Cut back on convenience food and takeaways - home cooking is much cheaper and healthier.
- Shop around - deals on car insurance, holiday insurance, credit cards etc. can vary greatly. Make sure you get the best deal for you.
Debt Consolidation Explained contains general information only. We strongly advise you to seek qualified professional advice before taking any action.