We could all use a bit of help with our personal finances from time to time. Now that summer is right around the corner, you might want to enjoy the coming months without feeling the burden of debt – and it definitely doesn’t become any easier.
Luckily, it will get a bit easier to clean things up as long as you know what to do and where to start. Here is a handful of clever tips so that you’re able to get started a bit sooner and perhaps even able to enjoy the summer months with way less debt and a bit more to spend.
It’s the kind of stuff that makes it easy to stay positive about the future.
Look through your finances
Understanding your own personal finances is vital to fixing whatever you need to fix. You can definitely do yourself a massive favour and be prepared the next time those creditors ring. When you know how much you’re able to afford, it becomes a lot easier to keep up with the negotiations and find a realistic solution – otherwise, you may end up in the same situation in a few months.
Dealing with creditors is never much fun, but it’s inevitable when you’d like to put the past behind you. Get it over with as soon as possible, improve your credit score, and start to live within your means again.
Negotiate a better deal
This brings us to our next point; you need to pick up that phone eventually and get the creditors on the line. It’s not just for their sake, though, as you may be able to get a much better deal as long as you’re communicating with them.
If you’ve been ill or away from work for a couple of months, it’s a good idea to make them aware of this. The same goes for any other problems you’ve had in the household lately, if your husband has been laid off, or if you’ve run into unexpected medical expenses.
Life is, after all, just life and creditors deal with it too. You might want to offer them a lump sum up front so that you can stand a chance of having them remove some of the debt from your name; have a look at guarantor loans comparisons, first of all, and consider helping yourself a bit along the way.
Fix your budget
Finally, you need to sit down and work out a proper budget now that you’ve managed to sort out your debt and know how to cut down on your expenses. Maybe you’re even able to save up for that emergency fund now that you’re spending less money on eating out.
The most important part, however, is that you have enough money to pay off that debt. Focus on that, first of all, and enjoy the feeling of moving forward with your life even if you have to live off rice and beans for a while.