Loool is it really that easy to get into debt? I work in debt management and best believe, doing contactless and signing up for these store cards, magazines, approved loan applications and credit cards will catch up with you when you just see money coming out your account. Once you start relying on credit to supplement your income issa a dangerous cycle and you could end up on my system at work. #notcool
First things first, you need to live within your means, do you really need 6 credit cards and 2 loans? Are you in your overdraft? Debt problems arise when you spend more money than you have and then you can’t pay it back. Also, avoid credit and use it wisely, a lot of these banks offer ‘attractive’ rates and accounts but you will have to pay it back including interest.
Also, don’t you ever ever get a payday loan. First of all, the payday will come. Second, the APR is mad like the robbery remix. I work in finance and the effects of them are rude. They will disrespect your life. Don’t (Bryson Tiller) do it! You ‘borrow’ £100 and you could end up paying back £1,000. What sense does that make? Explain your answer (5 marks). It’s not worth the hassle and they will send you letters like you paid for a subscription service. Just don’t.
So, how to not get into debt;
- Understand what you earn and what you have #knowyourworth.
- Check your bank accounts (Look for a low interest) and see if you can switch.
- Know your partner finances and financial situation as it always good to have a good credit rating.
- Check your credit file and make sure you are aware of all the accounts on your file and question, call the company if you don’t believe the debt is yours or pay it in full.
- Spend wisely – Live within your means (So have more money coming in than coming out).
- Try and have more than one source of income – So if you become unemployed you have another source of income (Depop, eBay seller, Avon etc).
- Have an emergency fund – You don’t know what can happen.
- Cash only – Pay in cash when you can.
- Have a savings account cause its always a rainy day in England and you need money.
- Keep a record of your debit/credit card expenses (Check your bank and have mini-statements or online banking).
- Stay in your lane – Don’t inflate your ego for the culture but you are eating Pot Noodle.
- Use price comparison sites, as you can get cheaper deals on your bills, broadband and various expenses around the home.
I hope you find these tips useful and I’ll see you in the next finance-themed post.
Peace until next time,
This Girl Can Write, A