Neil Douglas-Campbell on April 2nd, 2009

If you have money worries then the worst thing that you can do is ignore them.  You need to take action as this will stop the situation getting any worse and will give you back a sense of control.

Money Worries – What Are They?

Are you worried about your level of debt, low income, or being able to invest for the future?  The solutions that you adopt will depend a lot on the answer to this question.  One of the first things to do is to write down all of your income and expenditure, any debts, and any savings or investments that you may have.  This will form the basis of your decision making process.

Money Worries – Debt

If you have a high level of debt and are worried about being able to repay it then you should seek the help of the many debt-related charities to help you resolve the problem (e.g. the Citizens Advice Bureau or the Consumer Credit Counseling Service in the UK).

Money Worries – Income

If you have lost your job or are on low income then check that you are receiving all of the state benefits that you are entitled to – again the Citizens Advice Bureau should be able to help you.

Investing For the Future

If you don’t have enough money to invest in a pension or savings then start off by looking at the budget you have prepared and identify areas where savings could be made, e.g. reducing television subscription deals or shopping at discount retailers.  You will be surprised how much your monthly budget can be reduced without significantly changing your lifestyle.

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Neil Douglas-Campbell on April 1st, 2009

Debt can be a positive or a negative part of your life depending on how you manage it.  For some parts of life it is very nearly essential, like buying a home.

Debt Can be Positive

Debt can help you make large purchases like homes or cars that would be difficult or impossible to save up for.

Debt can help you through times when your income is reduced, because of losing your job or taking time to study for qualifications.

Debt Can be Negative

Debt can tempt you to spend money on things that you do not really need.

Debt reduces your future income and will eventually make you poorer.

Chronic debt problems can harm your health and damage your relationships.

Conclusion

Like a lot of things in life debt can be a useful thing if used properly.  However if you let it get out of hand it can be a destructive force that will affect your life for years.

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Neil Douglas-Campbell on April 1st, 2009

If you have a debt problem you would probably just like to say “Go Debt!” and make it all go away.  Unfortunately things are not as simple as that and you will need to take specific and sometimes difficult decisions to get rid of your debt.

Go Debt – What is Your Current Financial Situation

You need to write down all of your debts so that you have a full picture of how much you owe.  Also, you will need to do a family budget to show all of your income and costs.  This will show how much (if anything) you can afford to pay towards your debt.  If you can comfortably pay all your bills and your debt repayments then you don’t have a huge problem – just keep making the payments or even increase them and your debt will be gone eventually.  If you don’t have enough to pay all of your repayments then you should think about seeking help from a qualified debt advisor to help you sort out your problems.  Possible solutions would include bankruptcy or a debt management plan.

Go Debt – And Stay Away

You need to carefully consider what it was that got you into debt in the first place and what you can do to stop it happening again.  if you don’t do this you will find the same mistakes repeating themselves.

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