Approaches to Personal Debt Management
In this age of mounting personal debt it can be easy to worry about those things that the media and your family and friends have been warning you about. There are a few ways to help someone combat their own personal debt that might seem counterintuitive because of the way we’ve been moulded to think through what we read and hear everyday in the press. Here we take a look at a few approaches that might actually work for you as a way to manage and clear your personal debt over time.
Motivate Yourself Through Small Debt Conclusions – It can be easy to worry hard about the high interests you are paying on some of the larger debts you’ve got. Whether it’s through a store card or a credit card, you’ve always been told to get those out of the way as soon as possible, and worry about the smaller debts later on. It is advantageous to pay off the debts with higher interest first of course, but there is a balance to be made and it is much more motivating for a person to see smaller debts vanish as it signifies progress. This progress will implore a person to keep on paying off the debt regularly it can help to pay the entire debt off in a much quicker timeframe.
Don’t Worry About Renting – Especially for the younger generation renting is often seen as a way of wasting money, but in reality it offers flexibility, with plenty of future options open to you. Add to the fact that you can pick up and leave anytime you want for an exciting prospect somewhere else, with the lack of maintenance costs to consider (as this is down to your landlord) and it actually makes some financial sense at a younger age, before you know exactly where you want to settle down, and who with.
Having More Than One Credit Card – It might seem like a bad idea to have more than one credit card, and that you should only use that single credit card in emergency situations as a back up. It can actually help you to boost your credit rating however, as long as you paying back the balance on the card every month in full. One way to be smart with this is to use your credit card for your grocery shop, and have that cash put aside and ready to pay off the credit card bill at the end of the month.
There are myths about finances that are perpetuated within the media and by our friends and families in everyday conversations. As you can see, with just these three scenarios it isn’t always as cut and dried as you may think. Payday loan providers are another subject matter that causes controversy, but there are responsible payday loan lenders that can be a good quick fix, just as long as the borrower can afford to pay the loan and fee back, in full, within the agreed timeframe, much like the credit cards.