How to Budget and Save Money

Large numbers of UK families are ‘living on the edge’, according to sobering new research out last week. The research reported in the Independent newspaper found that one in five families are struggling to stay afloat financially amidst the rise in living costs and unemployment. It’s not surprising then that for any family struggling to make ends meet, a loan is going to seem like the only option.

But taking out a loan isn’t the answer. It may seem like a short-term fix, but in the long run you’ll be paying out more money to repay what you owe, thanks to extortionate interest rates. So instead of taking out another loan to help repay the first one, why don’t you investigate some good debt management companies?

Debt management companies can help you with your monthly repayments, reducing what you owe by as much as 60%. They may put you on a monthly repayment plan for debts of less than £12,000. If your debt is larger than that then you may want to consider an IVA, which allows you to pay back what you owe over a five year period. The IVA advisors liaise with your creditors on your behalf to reach a mutual and legally binding agreement.

It might be they agree to reducing interest rates, lowering what you owe or even allowing you to dictate what you can pay back each month. When in the hands of a debt management company, you won’t need to speak with your creditors at all. In the meantime, it’s a good idea to start budgeting so you live within your means. Next time you fancy buying something, ask yourself, “is this really essential?” If the answer is no, put it back!

To make it easier, always take a shopping list with you, which should include what you need, rather than what you want. That doesn’t mean that treats are completely off the list, but keep it occasional. To help cut down on your monthly spend – take your own lunch to work instead of buying it in each day. £5 here and there may not seem like much, but over time, that can add up to quite a bit.

Being sensible with your spending can mean the difference between living comfortably and ‘living on the edge’. Don’t be statistic: plan and budget and plan again. And if you do find yourself in debt, a debt management company can see you to the other side.