Topic: The dreaded Credit Card

 

Those credit cards can be extremely useful if used properly. If not they can become your worst nightmare.

Always make sure that you pay you minimum monthly balance, on the due date. Dont forget that if you pay a large sum off the balance early that the minimum payment is also still due on the due date. Don't forget to make the payment.

Try to pay more than your monthly minimum payment to make inroads into your debt.

The best way to use a credit card is to clear it monthly. Effectively you can be using the banks money interest free for your months purchases if you are wise whilst your money is in the bank earning interest.

Watch out for the balance transfers to another card. Whilst the amount that you transfer is usually at a great rate, once you start to use it the rate goes up to commercial levels.

The alternative to credit card usage for clothing and other department store items is the good old fashioned lay-by. Always worked well for people. Great way to budget.

 

 

Getting your Budget under Control

As a Mortgage Manager I see a  lot of people in difficulty and needing to undertake debt consolidation. I hope that I can help you with referrals to various other sites and some of the basics that we try to instill in our borrowers. Once you get into the habit it is easy. Its not rocket science.

Firstly it is important to come to terms that you income is limited and will have to be spread over many expenses.

Start out by working out how much you spend weekly. Grab a pen and paper. Work out how much you spend on the following:

1. Transport to and from work

2. Petrol for the car/s

3.Lunches that you buy at work

4. Coffees

5. Weekly grocery bill

6. Entertainment, include everything including video hire

7. Discretionary spending the scarf or tie you bought the other day

8. Total it all up, times the weekly total by 52

9. Next calculate your monthly spending, eg credit card bill, mobile phone account, mortgage repayments, rent.

10.Total it all up and times by 12.

11 Then we add the annual spending, such as council rates etc

12 Now total the entire list and calculate it on a weekly basis by dividing by 52.

13. Now look at your nett weekly pay.

14. Anything left over? Are you shocked by how much you spent on lunches & coffees?

15. Now make a list of where you can cut back.

Tips:

Take lunch to work. Cut back on the number of coffees.

Grocery shopping:  Make a list . Shop the outside aisles where the fresh food in season is displayed. Look for no name products , research has shown that in most cases the quality is just as good and the price saviings are enormous.

Watch that mobile phone usage.

Home phone bills. Ever considered using skype. Go to www.skype.com.

Have friends in for dinner. Much less expensive than a restaurant & much more private & relaxing.