New Year, New Financial You, Shed Those Christmas Pounds
As the winter sales rapidly encroach, consumers are yet again encouraged to overspend, especially as we try to avoid the steep VAT increase. Although, while some Brit’s are enjoying picking up the bargains, there are many of us who feel they cannot enjoy what the high street shops have to offer due to a huge cloud of credit card debt hovering following an expensive Christmas.
A shocking statistic was recently released by the Insolvency Trade Body R3 that suggested over 6 million people in the UK borrowed money in 2010 in order to cope financially with Christmas. There was a particularly steep rise the number of unsecured loans obtained, which is worrying as the British Economy continues to struggle in its revival. Of those surveyed in the report, over 1 million individuals admitted that it would take as long as 6 months to fully repay their loan, 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 the balance: Interest rates are generally high on most credit cards, no matter the provider. However, if you have a balance which may take you some time to repay, then now is the time to find an interest free balance transfer credit card. You could save a significant amount in interest whilst having an extended period of time to work out a way to pay off the balance.
Speak with Creditors: Don’t be afraid of being honest with a lender. If you know you have spent far too much over the festive season then talk your options through with your creditor or an independent financial advisor first if you prefer. So long as you are honest and realistic, your creditor will be more than happy to help your situation by changing your repayment scheme to one that better suits.
Work over time: Additional income doesn’t necessarily have to come from volunteering to work extra hours, although it may be the more obvious choice for some. If over time is not an option then perhaps you could consider getting a second job to supplement your income. Evening work or solely a Saturday job can do wonders to your bank balance, and it is important to remember that it is just a temporary arrangement so use this as motivation to work hard, pay off your debt and then regain your free time afterwards.
Walk, don’t drive: Hoping to shed those extra pounds this New Year? How about you get fit whilst saving a bit of money too? Simply choosing to walk to nearby places rather than taking the car can save you significant amounts of money in petrol. Or, how about taking the bus to work instead of the car? With VAT increases hitching petrol prices to astronomical levels, perhaps using public transport isn’t such a ridiculous idea. Every little helps as Tesco would say!
Generate some cash: How much clutter do you have in your spare room? When was your loft last organised? How about all those unused things being stored under your bed? Make 2011 the year that you dig out all your unused items and sell them online. Sites such as Ebay and Amazon are useful domains through which to sell your things and generate some quick and much needed cash. If this isn’t quite what you’re after, how about pitching a stall at a car boot sale? You’d save money in postage and packaging and gain a nice little earning at the end of it.
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; so 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.
