Life is full of ups and downs. So, unsurprisingly, every now and again, most people end up struggling a little financially. If you suddenly have an £800 car repair bill to pay, you might not have enough cash in your savings account to cover it. In that situation, you may have to take out a loan to tide you over.
This kind of debt is understandable. In many cases, unavoidable, because it is the only viable way out of your cash flow issue. But, you do need to be a bit careful, because as you can see from this website it is all too easy for debt to get out of hand.
Insolvency levels have risen to record levels
In 2018, record numbers of Brits ended up using an Individual Voluntary Arrangement (IVA) to write down some of their debts. In other words, they became insolvent.
For anyone, this is a serious step to take because it is a debt consolidation and clearance solution that can have a long-term impact on your life. It is certainly not something you want to do lightly or without seeking independent advice from a financial professional or other trusted source.
Debts can very easily get out of hand
So, by far the best approach is not to let your debt get out of control. Now, I am not saying that everyone that had unmanageable debt ended up with it because they did not take enough care. Far from it, if you fall sick and cannot work long-term things go badly wrong without your being able to do a great deal to stop it from happening.
Know when to say no
However, we all have a tendency to overspend. It is all too easy to give in to temptation. If the kids keep on asking to go to Disneyland and your parents say they will pay for the flights it is hard to say no. The problem is that you still have to find the cash to pay for airport parking, accommodation, park entry, presents and eating out.
If you can afford to do so, that is fantastic and there is no problem with saying yes. But if you have to go into debt to take advantage of your parent’s very generous offer, you can inadvertently end up with bills you can’t easily pay off. Sadly, learning to say no is a big part of keeping your level of debt manageable.
Save up for special life events
But, you can still enjoy these things. The trick is to get into the habit of saving for special treats. That way when your parents make a generous offer like that, you can safely say yes.
Tap into the power of money management apps
If you have not already done so, start using budgeting, saving and debt management apps in your daily life. Keeping track of everything in live time makes it much easier to realise that you are overspending and take steps to stop yourself getting into debt.
find out about several free ones that do an excellent job, by clicking here. All of these apps are designed
for the UK, so if you live in another country you may need to do a search for
equivalent apps that are designed to work where you live.