It has been in the news this month that Kerry Katona has been dropped at the face of Cash Lady after facing bankruptcy for the second time. She is rumoured to be very angry at this deal, but it can’t come as a shock to her.
Debt management is hard, and companies such as Cash Lady and other very high interest short term loan companies are adding to the debt burden of thousands of desperate people.
Avoiding debts is difficult. You have to learn to budget your cash properly, keeping track of what you spend your money on and how you can save in some areas.
Simply making a list of outgoings and incomings can really help you get a handle on your money and the worries that come with it.
Having a savings account that you keep cash for emergencies and for big expenses like holidays is another way to budget wisely. It’s good to see the money build up as you save.
If you can, an extra part time job can bring your debts down and help you pay off any arrears you may have accrued. Even if you have no debts, extra work can help you save up for life’s little extras a bit faster.
Credit cards are a quick way to get in debt if used in a non-sensible way. Some cards have high interest and you can quickly accumulate a number of cards, all with large monthly repayments.
If you are struggling with credit card debt management, there are a number of companies who can help you get this under control, reducing your payments down to a manageable level. Try to only use your credit card when you absolutely have to, and have the money ready to pay it off after the first month.
Saving up is a much better way of handling your cash. If you want a large item, spend time researching which one will be best and then save up for it instead of buying it on credit, which will cost you more in the long run. If you don’t truly need it right now, it’s better to wait a couple, of months and buy it in the sale or when you have the cash in your hand.
Try and save money where you can. If you need your house painting, perhaps do it yourself instead of hiring a decorator. Wash your car by hand on a weekend instead of going to get it valeted. Save where you can, and the money soon starts to add up.