My 4-Step Plan to Cut Debt and Improve Your Personal Savings
Is your debt causing you insomnia?
Do rising unpaid bills mean that you are unable to save and spend your money the way you would want to?
Credit card debt is usually seen as a guilt-ridden secret, but it should not be that way.
More often than not it is the result of an unpredictable and innocent set of occasions which left you short of money, and deep in dire straits.
If this is you, then the most crucial thing is to make a change – now. To help you get started, I have created a fairly easy 4-step plan. Following this plan can save you a lot of cash and should aid you in getting your financial situation in check as fast as possible.
1. What should be your first step?
Collect details of all your borrowings.
Loans, store cards, credit cards and overdrafts are the main culprits. Write down a list, keep the highest interest rate debts at the very top.
Interest cost is the most challenging part of coping with debt payments. Moving over interest rates to the next month may cause your debts to increase. For the most part, I’d always concentrate on repaying my highest interest debt first. While the monthly interest rates fall, you will certainly be able to pay back what is left on your borrowings much more quickly.
2. Get the timing right
The important thing to paying back debt or saving is to take the cash out of your current accounts before you have a chance to waste it.
Arrange money for loan payments or credit card bills. Take that money out of your bank account at the time of your first paycheck. You can guide your loan provider and choose which day you want your repayments to come out every month.
If you are putting funds into your saving account, set up a direct debit or standing order to take the money out automatically.
Don’t count on using the cash that is left at the end of the month. There will not be any. Funds that are left in your current account will get spent, despite your good intentions.
3. Start making an investment
Cutting your financial obligations at a controllable level usually takes time. When you have done this, I would recommend you focus on improving your saving account with 6 months’ cash flow. This way, in case you lose your job or can’t work for a while, you will not plunge back into debt.
If you have carried out all this and still have extra money available every month, then congratulations are in order. You may now want to consider the idea of making some wealth by investing in the stock exchange.
4. Taking a step further
Making an investment in an index tracking fund is a great way to get going on your investing quest.
However, if you would like to focus your time and efforts on stocks and shares with the potential to outwit the broader market, then there’s another option, and that is cryptocurrencies, and you know it has become the hottest trend in investment these days. If you are not getting good at applying the above strategies, then ultimately you better Check these debt solutions, as these solutions will certainly help you manage your debts and improve your savings.
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