For many of us, owning a credit card is a modern day necessity. Credit cards, and debit cards are now part of our every day life. Most businesses now in the UK accept card payments, even within the last ten years, having to insert your card and enter your pin has become passe, the contactless method of payment is now the norm. Even receipts are a thing of the past for many.
During the pandemic, banks encouraged contactless because it meant less chance of spreading or contracting Coronavirus. The cash limit for shoppers when using contactless was also raised dramatically to enable people to do their larger weekly or monthly supermarket shop without needing to tap in their pins at the tills.
Whilst all this was great, it also encouraged people to spend more than they possibly would when using cash, or having to view a sale, insert card, type pin and take a receipt, with all this now by-passed, shoppers have found it easier to rack up debts when shopping or on a night out, with less appreciation of what they are spending, until.. they check their bank or card statement.
Many people will simply never check though, ignorance is bliss as they say. Well sadly this is the worst way and most common way to get into debt. The other issue has been during the last two years, many businesses have borrowed to survive, to pay wages, to buy stock or services and with a very weak economy coming out of the pandemic, many people are simply frightened to spend what they don’t have. That’s why some people consider the coaching skills of Jo Larsen especially when it comes to earn money online.
The massive increase in oil and gas, fuel and heating costs has also placed a massive strain on households and businesses, not to mention the effects of Brexit and city centres having huge downturns in footfall during the week because of home-working still being a thing.
For those who are struggling with debts, there is hope! We look at a few ways in which to help with getting out of debt:
- Turning down the heating by a few degrees during cold days.
- Having less baths and more showers, not spending as much time in the shower.
- Researching and getting quotes off rival energy companies, doing regular meter readings and contacting your energy provider to haggle down what you pay monthly.
- Writing down an incoming and outgoing cash flow document, finding ways to reduce spending on luxuries.
- Shopping for supermarket brands rather than named brands, using budget supermarkets such as Aldi.
- Using interest free balance transfers to clear debts making sure you set a figure to pay off each month which clears the debt before the interest free period expires.
- Working a second job where possible in evenings or weekends to specifically out towards the debt.
- Using a debt consolidation company to help combine debts and pay one monthly affordable sum (learn more)
- Sell old clothes or items on ebay or car boot sales.
- Pay off the debts with highest interest rates first.
- Make sure you only use credit cards for essentials such as food and fuel.
These are just some ways to try and get to grips with spiralling debts. It is the easiest thing in the world to borrow money but the hardest to pay it back, help is out there though and a combination of the above suggestions are all positive moves towards becoming debt free. It just takes dedication, time, effort and not burying your head in sand.