How To Avoid Burying Yourself Under A Pile Of Debt
Posted on February 28, 2016
Given the availability of credit cards and the ease of loan transactions these days, a lot of people feel confident to borrow money to buy whatever it is that they want. Those who are disciplined and can control their expenses are able to repay what they have borrowed. Sadly, this is not necessarily true for the others. They end up spending more than they can afford. Before they know it, they have buried themselves under a pile of debt. If you don’t want to reach this situation, then you had better take steps now.
Put a Cap on your Expenses
You need to know how much you can afford to spend given the amount of money that you earn. No matter what happens, you should not stray away from the plan. You have to stick with it. If there is a need to sacrifice a lot of things like memberships or travel, then cancel them all.
Set aside Money for a Rainy Day
10% of your income should automatically go to savings. You should put this in a deposit account so that you won’t be tempted to touch the money at all. You could also invest in stocks and wait for the money to grow before pulling it out. This is the best way for you to avoid problems later. If an unforeseen family or personal emergency occurs, you will feel confident that you can deal with it.
Cut up your Credit Cards
The problem with credit cards is that they are very tempting. Everything is just one swipe away. You have nothing to worry about when you head to the grocery store or shop for various items. If you hate carrying cash all the time, then go for a debit card instead. You pay using the money that you already have and not money that you expect to get. A lot of people have not gotten out of debt because of credit card issues.
Hire an Accountant to help you
There are instances when you feel like you are in trouble simply because you don’t have an accountant who helps you sort out your financial problems. You feel like you have more debt than what you actually have. Accountants can help you go through your financial documents and make sure that all the records are correct. This might be another expense, but it is worth the cost.
There are a lot of high quality central London accountants. If you need them to do the job, you can just call them and make an appointment. Also, consider part time accounting services which are available to those who want to get accounting services, but not on a full time basis.