Was Your Debt Avoidable?

by Magical Penny on May 18, 2018

Can there be anything more stressful and devastating than realising that your debts are getting the best of you?

For anybody who is dealing with repayments and financial management, it’s fair to say that debts are the worst things that could happen. They can, literally, keep you awake at night with worries and anxiety. But, at the core of every negative experience, there is a lesson to learn for the future, a lesson that can help you to make sure that the mistakes of the past don’t repeat themselves. Ultimately, there’s only one question to ask: Could you have avoided your debts?

Consolidate your debts to manage them

So, you’re in debt and trying to sort it out

Admittedly, before you begin to question the path that led you to financial difficulties, it’s essential that you find a strategy to recover your budget. You’ll notice that if you’re struggling with large sums of money with multiple creditors, a solution such as debt 

consolidation with debtconsolidation.loans can transform financial chaos into a manageable situation. It’s recommended to work closely with a professional advisor to get your budget back on track and reduce the risks of increasing your debts in an attempt to pay them back quicker.

caution

Can you learn from the mistakes of the past?

When debts are not the result of an unfair situation that wasn’t under your control – such as the inflation of the economy – they are caused by misguided actions that drive to inconsiderate spending. One of these is shopping, as it is for many, a full-time hobby. Indeed, when shopping is a significant part of your life, such as a regular weekend trip or a coping strategy after a bad day at work, it’s easy to see how it can have catastrophic results for your bank account. So, it’s important to identify patterns for impulsive shopping to control the urge and organise your budget.

Did you compare prices?

Do you know that a majority of British households continue to waste a lot of money on recurring bills? Indeed, for a lot of people, the idea of switching suppliers – whether it’s car insurance or energy – is preposterous. And because they continue to value their supplier, they hope that their loyalty is rewarded through lower costs.

The truth is: It isn’t. You need to shop around and compare prices to figure out the most cost-effective solution for your needs. When it comes to energy suppliers only, you could be saving £200 up to £1000. So what are you waiting for?

Did you have an emergency fund?

Are you saving money?

Do you know that most people don’t even have an emergency fund? Most Americans can’t even cover a $1,000 emergency. The British population is facing similar difficulties. Preparing an emergency fund can help you handle unexpected costs, such as fixing the car or the boiler, for instance. While it can be challenging to save money, it’s worth the effort when you know you can avoid payday loans and their high interest rates.

The bottom line is that a lack of organisation is at the core of what causes a debt. Whether you are unaware of your spending habits or whether you haven’t looked for ways to save money, being organised is what keeps you out of debts!

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