Prioritise your way to debt management
Most people in the UK are in debt of some kind, and regardless of the level of that debt, how it is managed is very important. Here, payday loans provider Cash Until Friday (http://www.cashuntilfriday.co.uk) explains how to prioritise your way to effective debt management.
We all understand the importance of prioritising when it comes to managing our time, but the fact is that prioritising can also help us manage our money. If we prioritise our spending habits we are less likely to get into debt. For instance, to avoid falling short of pay day, spending your wages too soon and resorting to a payday loan, prioritise your bills. Food, utilities and basic living expenses are of course a must; mortgage or rent payments are unavoidable regular bills for most of us; and then there are the other essentials such as travel costs. Put money aside for these before you spend a penny on anything else and you’re less likely to get into debt in the first place.
But considering that this doesn’t allow for any leisure spending at all, or the cost of a friend or family member’s birthday gift, for instance, let alone for unforeseen expenses such as a medical bill, car repairs or emergency plumber call-out charge, prioritising spending to that extent is perhaps unrealistic. If you have fallen into debt, then prioritising can still help. First, analyse all the different ways you are in debt, writing down everything from ongoing ‘life debts’ such as mortgages or car loans to payday loans and money owed to family and friends. Then put the debts into columns according to their urgency and importance. This will vary depending on your personal circumstances, for instance, your rent may be urgent but the debt to your best friend may be very important to pay back. It is helpful to think of consequences to not paying that debt back right now, and factoring that into the equation. If putting off payment of any of the debts will result in you getting further into debt (because of late payment charges or fees, or in the case of tax bills, for instance) then those debts should be firmly placed in your ‘urgent’ column.
Once you have prioritised, now is the time to communicate to those lenders who will not be paid back immediately. One of the most common behaviours when it comes to debt is avoidance – not just avoiding lenders but avoiding addressing the larger issue of debt. It’s time to be honest with yourself and honest with your lenders. Only then can you make a realistic plan of repayments and begin the journey out of debt.
Cash Until Friday are a responsible fast payday loan company, helping people to access short term cash when they need it. Find out more at http://www.cashuntilfriday.co.uk.
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