Don’t let excessive spending and debt worries ruin your New Year. If you feel that in the merriment of the festive season, you have lost control over your money then tackle it head on. The aim here is to give a few tips on how to shed those extra pounds of credit card debts as we enter 2011.
Recently revealed national statistics suggest that it will take homeowners as long as 6 months just to repay their Christmas debts, emphasising how important it is to financially plan throughout the year. In fact, a huge six million individuals felt the need to obtain loans just to cover the cost of Christmas, and many may join the tens of thousands seeking Free Debt Advice from money advice charities each month.
So, if you are one of the millions of Brit’s struggling with debt as we enter 2011, here is some advice on how to tackle them head on. The most important thing is to regain control of your money and in order to do so, you must remain calm and realistic; often the debt isn’t half as bad as you anticipated it to be!
Transfer your balance: We’ve all done it, resorted to the credit card to make last minute present purchases. Credit cards give a wonderful false sense of security that you can spend unlimited amounts of money, until that bill comes through the next month of course! If you’ve overspent on the credit card, then consider obtaining a 0% balance transfer credit card, in other words, a card that doesn’t charge interest. Most lenders offer interest free deals that last anything up to a year; some even extend that to 16 months. So it is imperative to compare the current deals on the market in order to find the right solution for you.
Speak with Creditors: Now, I’m not suggesting for one minute to become best friends with your creditor, but contrary to popular belief, they are there to help. They would much prefer you to explain your situation rather than be elusive with your repayments. If you are really struggling to manage your debt, many lenders can organise a better, more manageable repayment plan for you, for example paying smaller amounts over a longer period of time or paying more when you can and less when necessary.
Volunteer for overtime: No matter how much you dislike your job, it may be worth offering to do some additional overtime to boost your wage slightly. Or if your evenings or weekends are free, then perhaps you could take on a part time job. This will not only give you an added income but it will give you some extra experience and perhaps open your eyes to a potential career that you love.
Walk, don’t drive: How many of us started the New Year with the resolution to diet and get fit? I know I did! Get fit by walking to the local shops rather than driving, not only will this help your fitness but it will save you more than you’d expect on petrol. As VAT prices have risen a huge 2.5% this year, petrol prices have sky rocketed, so save those pennies by choosing to walk.
Generate some cash: It is amazing how much money you could generate just from sitting at home by your computer. There are various online companies out there who offer money in return for simply completing surveys and questionnaires. Surely this is a better way of spending your time than simply staring at your home page of Facebook, waiting for a notification?! When was the last time you had a full clear out of your belongings? You could transform your clutter into cash by selling your unused items online on such sites as Amazon and Ebay – this is particularly useful at this time of year when your old toys and gadgets have been replaced by new ones!
Cool it and wrap up: Now we all know that utility bills are the main culprits of our desperately low bank balances, but I think the amount that can be saved from a little energy efficiency is greatly underestimated. Turning down your thermostat a few degrees won’t dramatically reduce the heat in the house, but could dramatically save your bank balance. Simple things like turning unused lights off, putting your washer on a cooler wash, washing up dirty pots and pans by hand instead of the dishwasher and using your laptop on battery all can make huge contributions to the amount you save on your utility bills. Additionally, utilise offers such as free evening and weekend calls and save your necessary phone calls for then.
Cool it and wrap up: Other ways to reduce your heating bills specifically include using draft excludors on the doors of communal spaces, such as the living room. Drawing the curtains over in a room where the heating is on is a great form of insulation as is adding carpet or a rug to wooden floors. The biggest expense in regards to heating bills is through heat loss in the home; consequently conserving it is imperative to lower those bills.
Bette writes for Just Clear My Debts, one of the UK’s top websites for Free Debt Advice, and Credit Card Debt information.