Debt is something that is in most of our lives whether it is considered good debt such as education loans or consumer debt. Finance charity Credit Action found that average consumer borrowing now stands at over £3,200. With an amount like this, it’s important for you to master how to use loans and credit to your advantage.
Debt management tips
- Have a budget: Budgets are a fact of life and they should be incorporated into every facet of your personal finances. You should have a budget for entertainment, food, utilities and travel. Don’t try and mix all of your finances together when you are budgeting. By having a budget, you will be able to manage to pay your debts off successfully because you will have a budget to pay such debts every month.
- Know exactly how many debts you have: Do you remember that personal finance show on BBC called Spendaholics? It followed people with financial problems who were trying to tweak their spending and sort out their debts. You should endeavour to know exactly how much that you owe – when you know the number, this makes it much easier for you to pay.
- Talk to your lenders: From consumer finance lenders such as Peachy Loans to your building societies, your lenders are here to listen to you. It can be difficult to admit to financial problems to your lender but it is always better to communicate so that the ideal repayment plan can be created for you.
- Know due dates to pay off loans: You should always understand that the due dates of you to pay your loans are generally not negotiable. When your loan is due in 7 or 10 days, you should already have your loan repayment ready so that you don’t incur any difficulties when you are dealing with your loan.
- Only borrow what you need: When you are thinking about getting a consumer loan, you should only choose amounts that you can afford to pay back. By simply borrowing what you need, you will be able to balance your books easily as opposed to falling into financial trouble.
With these debt management tips, you can get into the driver’s seat of your personal finances so that you can balance liquidity and debt at the same time. Take control of your finances today by keeping your debt at a manageable level.