Watching other kids with their ice cream with the flake sticking out of the top was never nice when you did not even have sprinkles on yours. Seeing the latest pair of trainers in tatters on classmates’ feet when your ‘pumps’, which your mother told you that yours had to last until the summer holidays were in perfect working order on yours, was a hard way to go through childhood. The damage that was done by wanting what we could not afford may be responsible for most of the people in the UK struggling with credit card debt.
Catalogues, Sales and Wedding Days
You may wonder what shopping catalogues, bargain basement sales and celebrated days have in common, but they are connected more than you may at first, realise. Catalogues and credit card purchases used in times of sales and wedding days are all things you can’t afford at the time, things you want but don’t think you can afford at a higher price or times when you are supposed to wear something borrowed for good luck. If you use your head, you can get them all done in one swift purchase on your credit card, because if you get married in something you bought using your card, technically it is something borrowed until you pay for it.
Learning the Meaning of Affordable
Many people make the mistake of accepting offers of credit when they can’t afford it. The desire to have something when you have no money to buy it outright can be too strong for most people. Large purchases such as your home or car are obviously too expensive for most people to purchase without borrowing, but there are many who accumulate unnecessary debts. Before you can help yourself out of debt, you need to know exactly how much money you have coming in and when you will have it. This means you should take stock of your outgoings and your income to see how much money is remaining. In many cases, by the time you sit down and try to take control of your finances, your figures will already be showing negative numbers.
Removing the Temptation
Many people who are unable to take control of their finances take the drastic measure of cutting up their credit cards. This is unnecessary if you are committed to removing your debts. In fact, there are many advantages to keeping them intact because at least one credit card will be helpful when you have recovered from your situation. If it helps, take your cards out of your wallet or purse so temptation does not travel with you everywhere you go. When you have stopped making unnecessary purchases, it is time to address your debts. In reality, debts should be addressed as soon as you realise there could be a problem and that is what should prompt you to stop making purchases. Hopefully, this happened before your credit card company decided for you.
Speaking to a Professional
With month after month of mounting debt, it may be tempting to put the cost of a psychiatrist on your credit card, but the professionals you speak to should be more knowledgeable about money than flashcards. There is a whole industry devoted to the recovery of credit ratings, regulated by the same governing body as all financial services in the UK. Speaking to a debt management company is the obvious way forward if you are unable to manage your debts without help or you need to have someone help you get to grips with your finances. Ensuring you access good advice should be your priority and do not be afraid to ask them why they think the suggested solution is best for you. A professional company will have no problem explaining options that are suitable as well as those that you are unable to access. They can tell you why one is better to limit damage to your reputation than other options and the fact that they deal with people in your situation should mean that they put you at ease.