How to dig yourself out of financial hell
Debt is something many people in Britain experience each year. The COVID-19 pandemic has undoubtedly worsened people’s debt crises during the first lockdowns, and things aren’t getting any better due to the rising cost of living.
You’re likely reading this because you are currently living in financial hell, and you’re struggling to stay afloat. It’s important to know that you’re not alone and that you’ve actually got lots of options to dig yourself out of your financial situation.
In this article we look at three ideas to help you take charge of your money and give yourself financial freedom.
Get expert advice
If you’re feeling out of your depth, it makes sense to see some expert advice on the state of your financial affairs. You might not know it, but several charitable and non-profit organisations provide free support to people struggling with debt.
StepChange is one such example. Their professionally-trained advisors can help you determine what you have to pay each month, what income you make, and formulate the best plan to tackle your debts.
When someone feels like their debts are out of control, one thing they should never do is think they are alone. Yes, admitting there’s a debt problem might seem embarrassing or shameful to some people. But, it’s the first step on the road to financial recovery.
Consolidate your debts
Do you have a lot of credit card debts and high-interest loans? If the answer is yes, one idea to improve your finances is to look at consolidation loans. In a nutshell, consolidation loans are ones offered to pay off existing borrowing.
Instead of having several credit card bills and loans to pay off, you simply pay one affordable monthly payment from a single loan. Consolidation loans are helpful, especially to people with several credit card debts to pay.
As you can imagine, consolidation loan applications get assessed in the same ways as other loans, so it’s worth finding a provider that caters to your specific financial needs and will evaluate your application sympathetically.
Look for ways to cut your bills
Most people have regular outgoings or bills they pay where the products and services they consume could cost them less if they look at alternatives.
For example, some people might find that online streaming providers like Netflix are a more affordable option than paying almost £100 for satellite or cable TV subscriptions.
Another idea is to look at ways of reducing your energy usage at home. You could see if there are better energy tariffs elsewhere, plus you may find out innovative ways of reducing your energy consumption at home with LED lighting or installing a smart heating system.
You could also compare prices and perhaps use supermarket own-brand products to make substantial savings on your grocery shopping when it comes to food.
Get expert help if your finances are out of control
The above ideas can help you improve your finances if you feel they’re getting out of control. Remember to seek expert help and support if you’re struggling and feel like your debt impacts your mental health.
Photo by Avery Evans