If you are looking to be debt free in 2016, now is the time to take action and plan ahead.
You need to be Aware of your Debts
One of the biggest problems that many people face is that they are actually unaware of how much debt that they have. If you don’t pay too much attention to what is going out of your bank on a monthly basis, you are going to struggle to move out of debt. This is why people who are looking to get free of debt need to take the time to properly review their account.
It may be that you are still making payments for things that you no longer need or use. The ease of setting up a Direct Debit means that many people have money coming out of their account every single month for a service that they have no need or use for. If you are looking to use your money in the most effective manner, you need to be aware of your debts.
Can you make savings?
Removing spending that you don’t need is a good way to improve your finances but are there also ways in which you can make savings? It may be that you are not getting the best price or value from your utility bills, and there is a lot to be said for reviewing aspects like your home insurance costs, your gas bill, your electricity bill and even things like your phone or broadband provider.
If you can take the time to review these aspects you may find that there are easy ways in which you can slash the amount of money you spend each month. Be sure to check online because there are some online sites that will provide you with the chance to review these bills in one go.
There will also be ways that you can lower the amount of money you spend on other items. There has been a rise in budget supermarkets in recent years which allow people to make their money go further without compromising on the quality of product that they receive. It may be that you can make a number of substitutions that will help you to find value in your shopping without cutting back on the quality that you have grown accustomed to.
Even something simple like having nights in rather than a night out or switching to a packed lunch as opposed to a takeaway can really help you to get more from your money.
It is fair to say that many people are able to resist anything apart from temptation and this is definitely the case when it comes to finances. If having a credit card places too much temptation in front of you, it is time to remove that temptation. Clearly you need to pay off your debt or credit card bill before you can close down your account but you’ll find that committing to no longer buying on your credit card will provide you with a great benefit.
Removing cards, shopping catalogues, store cards or any other form of credit that places temptation in front of you will be a very sensible way to making more of your money and ensuring that you don’t fall further into debt.
Look to Pay Off the Most Expensive Debt
When it comes to getting rid of debt, a lot of people struggle in knowing where to start their repayment plans. One of the most sensible approaches you can take to moving away from debt is to play off the most expensive debt. This is the debt that will incur the most interest so in getting rid of this debt, you can significantly reduce the amount of interest that you pay, which will provide you with more money to pay off other debts.
There is a lot to be said for consolidating your debt and if you are looking to pay off all of your debts and then focus on one lump sum, a guarantor loan could be what you are looking for. Anyone that wants to find out more about the benefits of a guarantor loan will find that there are plenty of options at their disposal and there should be a way of taking control of your finances in an effective manner.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.