Reducing The Stress On Your Wallet

After the festivities of Christmas, the reality of paying for it all can be something of a shock. Not so much a happy New Year, as a financially hung-over one. Indeed, not everyone spends their way through Christmas, but some are surprised by how much they've spent on their credit cards when their statements arrive in the New Year. And for a few, paying off the debt can take months.

So how can you banish the financial winter blues? Here are some tips to get you started.

1. Open your bank statements

Unless you know what you’re spending and what you have left, you won’t be able to put your money plan into action.

2. Work out what you owe

Add up all your debts, whether it’s credit cards, personal loans or in-store credit.

3. See if you can get a better deal

You may be paying too much interest. If you can make savings here, it will help you clear your debts more quickly.

4. Start with your credit card.

If you use your credit card to help spread the cost of shopping, it may prove beneficial to pick one with a ‘0% on purchases’ offer. And if you’re paying interest on a balance, see if you can transfer your debt to a card that charges a low rate or even 0% interest. But, it is important that you watch out for balance transfer fees, which can be up to 3% of the amount you transfer.

5. Look for a lower rate loan.

Next, tackle any personal loans. Do you know how much interest you’re paying? If not, get hold of the original paperwork. How competitive is it? It is possible to find a better deal by checking price comparison sites; however, perhaps look at more than one because they don’t always come up with the same ‘best buys’.

6. Watch out for redemption penalties.

You may have to pay early repayment charges - typically one or two months’ interest - to get out of your loan early. Check with your loan provider or bank. If you do, work out whether you’d still be better off switching your loan, or if the repayment charge cancels out any saving.

7. Before you apply, check your credit rating.

If you’re not sure how good your credit history is, apply for a copy of your credit reference file. The three credit reference agencies, Experian, Equifax and Call Credit all keep credit information about us. By law, you can send off for a copy of your file for £2.

What's more, you may be able to get your credit file for free. The credit reference agencies often have free 30-day trials of their services. But it is important to understand that you normally have to give credit card or debit card details at the time, so make sure you cancel it within the 30 days or you’ll be charged.


8. Give the rest of your finances a brush up.

If you don’t have debts, use the New Year to make sure you’re getting the best deal on your bank account, mortgage and savings. Although many of us regularly switch to a better mortgage deal, we don’t tend to leave our bank unless we’re really unhappy with it.

Article Source: http://www.mycontentbuilder.com

Andrew Regan writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.

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