It’s not much fun being broke; not knowing how you are going to pay your bills next week as your money is running out quickly. It was something that became all too common during the recession and although the economy is improving the legacy of the recession is still around. Fun seems a long way away because the stress of debt makes it almost impossible to relax and cast it from your mind. Do you see this as the situation you face and see no realistic way out of your problems?
It is important to state at the outset that you will need to have determination and self-discipline to improve the situation but it can be done, certainly if you have a job that pays you a regular monthly income. The question is what you do with that income and whether there are savings and economies that you can make to start the process of recovery to a financial stable footing.
There’s no escape from some bills and it would be wrong to suggest otherwise. The rent will be due every month, you have to heat the place when it is cold and feed yourself. Transport will be a further cost because few people can walk everywhere. Why not sit down and write a list of how you spend your money each month and see whether it adds up to more than you earn? The fact that it often does is the reason why many other people have got into trouble in the first place. When the recession struck there was a huge number of people who found themselves in this situation in the following months when unemployment increased and there were few vacancies around for the unemployed to find an alternative.
Things are better but that does not mean that suddenly all the problems have gone away. If you still have debts you are trying to settle there may be too many calls on your income and insufficient money to meet them. One short term solution is a loan that will get you to the next payday. If you have no money and payday is still a week away you can get unsecured realistic loans as long as you repay it when your pay check comes in. The problem is that a month on you are likely to be ten days from payday when you run out of money again. It is time for a budget and a proper strategy to get out of debt. It’s the only way those fun days can possibly return.
Negotiate and Consolidate
You may be able to negotiate with some creditors to reduce your liability but they will only agree to that if you have payment proposals. Any debt you have on a credit card will be incurring a high rate of interest at the end of each month. Even if you can manage the monthly payment due you will not really be reducing your balance in any meaningful way.
The list of debt and the payment you need to make each month may look daunting but if you have a regular income there is a way to reduce your monthly payments and the amount of interest you are paying just to avoid falling into even greater trouble.
Modern day internet lenders are sympathetic to applications from people who have a regular income and appear able to make monthly instalments to repay the loan in full and on time. If you consolidate your liabilities, apply for a loan that will pay them off in full, and do so if your application is improved then your monthly outgoings will reduce. You can do the sums yourself because even with bad credit a loan will not incur anything like the rate of interest that currently applies to typical credit and store cards.
It may have been some time since you had a surplus at the end of the month. You cannot waste it and you should still look at daily ways to economize to reduce your expenditure even further. Your problem will not go away overnight but you will have begun the long road. You have to be patient but fun days can return in the future as long as you are prepared to be disciplined.