Monday, 24 September 2012

Reduce your spending in 5 simple steps


1. Manage your debts!- If you intend to get your debt in order, your first move should be to make certain it doesn't get larger. If a great deal of debt is on charge cards, get rid of them, since it is simple enough to obtain brand new ones when you have control over your current spending. Remove all cookies on your computer which are linked to your personal charge card accounts, so you are unable to spend over the internet. If you are struggling with debt, it is essential that you get your credit cards under control and reduce your spending. Find out more at http://www.shrinkyourdebt.co.uk

2. Create a budget plan - Individuals find themselves debt more often than not simply because they spend more money compared to what they bring in. It's important to be aware of exactly what you're spending in a typical calendar month. Keep all your receipts and take note of everything you spend your money on.

3. Eliminate what you can - When you know what you're spending your money on, then you can determine what you can eliminate. Do whatever it takes, even if it means a few changes in your lifestyle. Target the non-essentials, satellite TV deals, superfast broadband packages, cell phone tariffs, alcohol, cigarettes, eating out, magazine subscriptions etc.

4. In what aspects of your life can you make some savings? - the essentials you could save money - central heating costs(change supplier, loft insulation, switch thermostat down by a degree), transport(walk to work, car pool, take bus), shopping for groceries(should you pay out extra for big brands?), taxes(if you are self-employed, are you currently paying more than you need to?), make sandwiches for work rather than spending money on lunch.



5. Purchase a few things in big amounts - Financial savings can be achieved by purchasing particular items in bulk quantities. If you have a Costco card account or are aware of a buddy who has one, you may be able to get bulk items that could be stored (e.g. tinned foods, office materials, crisps/potato chips, soda or juice, frozen goods etc)




Thursday, 5 July 2012

Three causes of credit card debt and three ways to get you out


Credit cards are almost a basic necessity of modern life, that there are an increasing number of services you can't access without one. How can you organise a car rental, pay for your vacation or buy online products. However, with the rise of credit cards, there has also been a general increase in debts. An increasing number of people are finding that they can't manage their credit card debts. To find out more, go to ShrinkYourDebt.co.uk

You may be asking "How did I get in this situation?" There are primarily 3 mistakes that are made: 
a) Using a credit card for things that need to be paid for on a regular basis. If you have to use your card for gas or groceries, then you are spending more than you are earning. You can perhaps do this once in a blue moon, but if you're following this pattern on a regular basis, you will end up adding to your debts.

b) Sticking with the same card provider when there are other cards available with more competitive repayment terms. Some folks have been locked into high interest cards, leaving them with high repayments. These high interest cards will also mean take longer to pay off.

c) Making monthly payments barely above the minimum required by your credit card provider. Minimum payments set by creditors are designed to keep you in debt for longer. The minimum required payment is usually calculated to be just above your monthly interest. If you are mostly only paying interest and barely paying off actual debt, then you are unlikely to make any real headway with your debt repayments. By the time the following month's payment comes round, you will no doubt have used your credit cards for buying things, therefore increasing your debt even further.



What can I do to really see my debt reduced? 

a) Use your card for the things that credit cards should be used for, and not for you basic essentials. Here's something radical, why not take the scissors to your card and put it out of use altogether? Do this and I'm sure you'll see a difference in your credit card account balance. Credit card providers can always send you a new one when you need it.

b) Change credit card provider. Find out what are the best deals around and do your research. There are good deal comparison websites out there that can assist you in finding the best card for your needs. Remember to read the small print and beware of getting caught out with offers of low interest which last for a few months, but then revert to a higher rate than on your current card.

c) Pay over the minimum monthly payment required by your card provider. Pay as large an amount as you can each month. As a rule of thumb, try and aim for as much as two times the minimum payment.

I hope this article will give you the information you need to take action today. Act now, and you will be a step closer to clearing your debts.