Disappointing as it is – there is no such thing as a Quick Fix Debt Solution (aside from winning the lottery).
The first step is being realistic about your income and expenditure. Most of can tell you exactly how much we get paid but then guess at how much we spend in areas like the weekly grocery shop or socialising. When there is no money left at the end of the month, we wonder where it all went…. sound familiar?
“Being honest about your expenditure is the key”, says Penny May from Life After Debt ®, “Sit down and honestly record how much you are spending on a week-to-week basis. You will be amazed at the areas you are wasting money”.
If you don’t know how much you spend in an area, such as groceries, then here are some helpful hints:
- Before you go shopping, write a list… if it’s not on the list, don’t buy it!
- Keep all shopping receipts over a few weeks and work out an average as it is unlikely that you will spend exactly the same amount each week.
- Keep a notebook and jot down each and every item you buy each day. EG Make sure you include your take away coffee, the sandwich at lunch and the afternoon chocolate treat!
- If note-taking is too old-school, check out the long list of apps available to do this for you…
Once you know where your money is going, you can then work out areas in which you can cut back and save. A good idea is to devise a weekly or monthly budget for all expenditure: everything from rent, food, utility bills and credit repayments all the way through to gym memberships and socialising. Once you have a budget you can afford, then be disciplined and stick to it.
For some people these tips come all too late as they continue to struggle with a mountain of debt and credit commitments which are just overwhelming. Many people prematurely turn to Bankruptcy as their only option to fix their debt problem. There are other alternatives out there such as an Informal or Debt Agreement which can help put unmanageable debt into one package and one repayment once lending is no longer possible. If you’re struggling with debt, then contact Life After Debt ® for a free, no obligation assessment of your situation and possible solutions.