Managing money is tough, especially in this economic environment. Basic things cost more, which may lead to debt, hopefully only for emergency purposes. It is no secret that managing money can be tough.
After all, not only does money management tend to be omitted from school textbooks, but we’re also in the midst of a cost-of-living crisis. As such, if you’ve found it harder to get by in recent years, you are not alone, and there’s nothing to be ashamed of.
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There are, however, certain steps that you can take in order to dig yourself out of that financial debt. Here are some tips to get help manage your financial debt.
Ensure you’re not owed any money. There are a few different scenarios in which you may be able to claim back money that you are owed, some more obvious than others. For example, you can seek out compensation if you are injured at work, especially if this has impacted your ability to work and earn money. However, you may also be eligible for compensation for purchases you made as far back as 2007! For example, if you purchased a car from Barclays between 2007 and 2021, you may have been mis-sold PCP, which means that you could be owed thousands from the lender. You can find out more about Barclays car finance claims here.
Increase your earning potential. Seeking out a higher-paying job is a great way to dig yourself out of a hole financially. However, in order to make this possible, you need to find as many ways as you can to increase your earning potential, or the value that you bring to the table from the perspective of an employer. For example, you could complete free online courses and programs that strengthen your CV and expand upon your knowledge of a specific, valuable topic. This also shows that you’re willing to invest your time and energy into learning something new, which could encourage employers to take a risk and hire you.
Turn down plans you cannot afford. Turning down plans that you cannot afford is, for obvious reasons, a step in the right direction when it comes to improving your financial situation. This is because you will have more money leftover at the end of the month that you can use to repay debts or grow your savings. However, this is sometimes easier said than done, especially when it comes to turning down invitations from friends. After all, doing so could leave you feeling as though you are putting the relationship at risk, which would not be the case if they were a true friend. Remember, you could always suggest free or low-cost ways to hang out instead!
Track your spending. It is incredibly easy to spend money without really realising it, which is why you should make sure to track your spending as closely as possible. This will help you figure out where all your money is going, so that you can work on reducing your monthly expenses wherever possible. It also means that you’re becoming more money savvy day by day, as you’ll be a little more focused on your savings goals.
