Did you spend too much on your last vacation? You are not alone. A survey conducted in 2015 by consumer credit news agency Experian found that 68% of people spend too much while on holiday. In addition, 40 percent of respondents said they had accumulated credit card debt while on vacation, and 46 percent of respondents said they used their credit card to fund their vacation.
Even though you have not traveled anywhere last summer, with all the activities, drinks and meals, our budgets can be easily matched.
Assessing the situation
For those who do not have an emergency fund to use as plan B, it is important to organize with the bills before turning a snowball. And with next summer coming, now is a good time to get ahead by organizing your bills and putting your financial life in order. The first thing you need to do is look at your financial situation and face any debts.
Check your bank statement, card bills and other bills you have. Put together all the transactions and make a full balance sheet to see how much money you owe. Getting to see everything in one place is essential to understanding the situation.
Then it’s time to draw a budget by first making a list of your monthly expenses. Based on your current budget and essential expenses, how much money can you allocate to pay your debts and how long will it take for your debts to be paid?
You will then need to analyze the superfluous expenses that you can reduce, but not necessarily remove completely. With a few tweaks and a little creativity, you can pay off your debts while still enjoying and enjoying your life.
Identify ways you and your partner can reduce expenses. For example, can you two bring lunch to work instead of buying lunch every day? Can you use public transport instead of driving a car? Can you ride your bike or go to work instead of spending with transportation? Can you get rid of your monthly gym membership and work out at home or at a park?
Once you have identified ways to reduce or eliminate expenses, you may have a lot more money saved. If you have allocated money that you could save to pay your debts, how long will it take you to be debt free?
Caring for debt
If you’ve worked out your budget and it looks like your debts may affect more than a few months, it might be a good time to explore an additional source of income.
Do you have a spare room that you can rent on Airbnb? Can you take a part-time job for a few months? Does your workplace offer overtime for additional hours worked? Can you sell old things that you no longer use? Think of creative ways to make extra money to deal with your debts.
Think long term
If you are financing part of your debts with credit cards or using your overdraft, look for other options to pay less interest. This interest accumulates over time and you end up paying a lot of money to the bank, not to mention the hidden fees and catchwords that always appear in your statement. Good lender online loans are the ideal solution for those who are tired of paying high interest rates to banks and need more flexibility to pay their bills.