For some lucky people, money is never a major issue. They make money, spend money and save money without ever deviating from the straight and narrow. For most of us, things aren’t anywhere near as easy. The majority of people have plenty of financial burdens weighing them down and holding them back from their goals. Here, we’ll look at some of the common financial burdens people like you have to deal with, and how you can ditch them.
Feeling Like You’ll Never Pay Down Debt
If you’re up to your nose in debt, and there’s no end to the issue in sight, the first thing you need to do is find where you’re bleeding money and apply pressure. Despite being in serious debt, a lot of people will continue to take out loans and use credit cards. If you want to dig yourself out of debt, stop using your credit cards as much as possible for two months, and start paying the minimums on them. By regularly paying the minimums, you’ll become more used to the idea of living on what you’re making, not what the bank will lend you. Once you’ve become more comfortable with this, you can concentrate on paying down debt on the card with the highest interest. Once this is gone, move onto the next highest, and so on.
Your Credit Score Is Terrible
We all know how much our credit scores can affect our personal finances, and when yours is abysmal it can hold you back from all kinds of pressing personal goals. Bad credit can be a serious burden, but there are many ways to shed it. First and foremost, check your credit report online and scour it for any errors which could be dragging your score down. This could be debts you don’t recognize, or ones that have been settled yet are still a black mark on your report. If it’s free of errors, then all you can really do is pay closer attention to your financial habits, and make sure you’re being smart about them. Keep making payments on time, and avoid using too much of the credit you have available to you. Finally, if you’re looking to cut down on the amount of credit cards you’re using, don’t cancel your oldest card. The length of your credit history is a major factor in your score.
Your Spending is Out of Control
In today’s consumerist society, it can be easy to lose your grip on your spending habits, and let it spiral out of control. To get a grip once again, try setting yourself a daily “money window”, where you take five minutes to go back through your recent spending habits, and how they’ve impacted your current finances. Getting into the habit of this kind of daily check-up will make it easier to stay accountable to yourself in relation to your personal budget. It will also give you greater insight into your personal spending triggers – and the things you can do to iron them out.