The backdrop of British society is now one that is coloured with debt. However big or small, households across the country are struggling to make ends meet due to their financial difficulties. The amount of disposable income people are left with after paying for essentials such as rent, utility bills or loan repayments is shrinking drastically.
The number of British adults that only have around £10 left to last the month after these expenses is thought to be at almost 5 million. The majority of those affected are young, between 18 and 24, but these are issues that affect the entire population. More and more people are turning to loans, whether from the high street banks or from payday loan companies. The average monthly disposable income is little over £200, a figure that does leave much room from manoeuvre in terms of managing your finances.
There are some telltale signs if you begin to slide into difficulty. For example, do you know how much you owe? If you have got a clear picture of your debts and bills, knowing exactly what is owed and when it needs to be paid, you immediately remove any hidden stresses. Tackling it head on means first you have to confront your problems yourself, and that is often half the battle. Once you have made this step, you can explain your situation with clarity should you choose to seek advice.
Whether or not you have a loan or other unsecured credit outstanding, it is extremely likely that other expenses are still factored into your budget. Utility bills, credit cards or overdrafts can be equally as problematic. If payments are missed, it is likely that extra charges will be added to your existing bill. Without prioritising your debts or payments, you run the risk of damaging your credit rating as well as having to pay out more money in the long term.
With credit cards, you need to be aware of the details of the account. Things like the rate of interest and charges that may be applicable should you use them to withdraw money from a cash point are important to stay on top of. Hidden withdrawal fees can add up, especially if you find yourself only meeting the minimum repayment amount each month.
Another aspect is how you’re paying off these repayments. Are you having to borrow money to pay off another debt? While it may offer a quick fix, in reality it is just placing you deeper into the vicious circle of multiple debts. This is a common feature of payday loans and their selling point, but it is important to try and manage your finances rather than just transfer your debts between one creditor and another.
Being able to act appropriately is vital if you are serious about regaining control of your finances. Without the right guidance it is very difficult to know how to manage them, what to tackle first and what your options are. At CTAS our aim is to help you move forward into the black. Contact us today for expert advice from our team of experienced consultants.