The start of 2024 is a great way to start getting finances in order. It is important to look at and monitor cash flow as it is crucial to know how much money is coming in and going out of the bank, especially when it comes to dealing with debts. In this blog we will be discussing ways in which you can reduce the amount of expenditure payoff and looking at tackling credit cards with high interest charges. We will also be covering how to help you as a business owner, if you are having financial trouble, and how to overcome it by taking advice from professionals.
Managing your money:
A great way to start tackling overspending is to create a budget for every week. By working out how much money a week it takes to spend on rents, bills and facilities you can also work on calculating a small amount of money that goes towards paying for any debts you may have. By putting away some money received from savings, you can also set up emergency funds to use if you happen to fall near bankruptcy, as a way to help you get back onto your feet. Cutting down on spending on luxury items is also a simple way to save money, going for cheaper alternatives in terms of foods and other items you need, and spending less overall on what you want.
There are also methods that can help in saving money that you can not complete alone. Talking with debt collectors can be a great way to work out your own individual plan working forward, which can help you in paying off debts. However, to complete this you would need to have a very good payment history, as otherwise it can be extremely challenging to negotiate interest rates otherwise.
Whilst there are many types of ways that you can go about paying off your debts, it is important to explore all of the options with your bank, as it is crucial you find the right plan that works for you. For example, you could start by transferring balances to a card with a lower interest rate so that it is easier to pay when you get to it. Or you could undergo the snowball or avalanche methods as a way to pay back debts. The snowball method is where you go ahead and tackle the smallest amount of debt first, and then work your way onto the next, which is a good way of providing a psychological boost. However, the avalanche method is where you tackle the high-interest payments first, which helps you to save more money in the long run.
Prioritise High-Interest Cards:
Identifying the cards with the highest interests can be a great way to help you to spot where to pay off debts first. Cards with high-interest are the ones that are costing the most money, so by paying these off first it means that you are minimising the amount of interest that is forming on top of the rest of your debts. In the long run, this can help you to save money that you can use to spend towards other financial goals.
By paying off high-interest cards you are also working towards improving credit score. Your credit utilisation ratio is something that is highly significant to determining credit score, so by paying off debts, this ratio will lower, further meaning that your overall credit score will be positively impacted.
For Business Owners:
Make sure to look for opportunities to increase your business revenue, which is something that can assist in involving and expanding your customer base. By helping to introduce new products or services, or implementing effective marketing strategies you can potentially have an increase in making sales and overall revenue. The additional revenue made can then be used towards debt repayment.
Staying Committed:
Whether you are a business owner or struggling with debts financially, it is a good way to stick to your plans and remain disciplined in your spending. Making sure to stay consistent is crucial for successfully paying off high-interest credit cards. It is also important to consider consulting with financial advisors and solvency professionals to get personalised advice on how to manage your business and personal finances and repaying debts.
Silver Insolvency Solutions - Contact Us:
We have over 40 years of experience in the industry and can help you to solve issues, which feel impossible to face.
So get in contact with our team as soon as possible! You can email us directly at stephen@silverinsolvencysolutions.co.uk. Or call us on: 0203 961 7169 / 07872 606005.
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