How to manage your living costs

Warning: Late repayment can cause you serious money problems

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There can always come a time where someone struggles financially to make their ends meet, they may find themselves in a position where a certain repayment will be missed and they could be penalised for this. Missing any repayments and debt collectors chasing someone for that overdue money will nearly always be embarrassing for anyone to face. There can be a few things that can be done to make sure this does not happen and I will mention these in detail using this article below:

No one should ever take out finance when they realise that any repayments due are not realistically affordable for them to manage. People may need money quickly however there will be a time when that loan needs to be repaid and if this is not possible than that specific loan should not even be considered let alone applied for. A person before taking out finance should work out there disposable income as it is that figure that can be used to see whether other loan repayments can be made or not. The best way to obtain this information would be for a person to write down all the incomes they expect on that monthly basis and then deduct from that amount all their outgoing expenditure and the figure left over is the disposable income.

It is from that amount that a customer can then determine whether repayments can be made, if the amount is high and it can clearly cover the amount due then fine the finance can be applied for however if the figure is low or cannot cover any amount due then the loan is clearly not affordable and that person should not be looking for finance and instead they may need help from other companies towards their debts and their other personal financial circumstances. Also the disposable income can also be used when looking to make a purchase of some kind. If the amount is affordable then the item can be paid for however if the budget cannot cover this then it should be left alone until that person can clearly afford the item they were previously looking at purchasing.

There can be items that are hard to budget for such as unexpected cash amount payments that can come out of the blue and a customer may find themselves struggling to make these. Unfortunately these can happen to anyone and they tend to arrive when that person is least expecting them, these can include high dental bills or other medical costs, possible car repairs is another factor that can arise when that person clearly has not taking this into their financial situation and circumstances.

It is these unexpected bills that can arrive and leave that person struggling to make their financial ends meet and a missed payment can look likely however there is a financial solution in the way of the payday loan product. This can be a small amount lent by a lender with a high interest rate and it then becomes payable on that persons next payday (normally due for repayment in full within a single monthly period of 31 days as the maximum duration) these come with large interest rates based on the small duration of the payment product and the fact that they can be lent to people with less than perfect credit on their file. These however should be avoided where possible as they can charge APR and can make people financially struggle more. These people do not have a large amount of disposable income anyway so repaying a full loan in a single transaction on an available payday may lead to potentially other repayments being missed.

For me a nicer way to borrow in these circumstances could the short term instalment loan, normally set for repayments over three, six or maybe more months with some providers. These amounts can be borrowed by the consumer as convieniently as the payday loan product but then get repaid over a much more convenient and better timescale chosen by the customer. They can therefore select the best timescale for their personal financial circumstances however they have to know with an instalment loan the longer they take the product over, the more repayments due meaning more overall is repaid in total. This is definitely the easiest loan to budget for as the repayment amounts are lowered making them more affordable and the customer knows exactly when the product is taken out how many times they have to pay and what amounts are therefore due.

How to make money go further

People will always be interested in making their money go further and then in turn potentially last longer. There are quite a few things that people can do to enable this to happen and I will focus on these using my article below. Many people may also look for finance at some stage in their lives and they need to make their money go further as they have to assess whether or not any loan is affordable for them to obtain and then manage. If money is poorly managed then people may find that repayments are missed on certain bills and this can nearly always carry severe consequences for anyone involved.

I have found the best way to go around checking your affordability each month and then managing the money afterwards would be to find out what your disposable income is on a monthly basis. This is always very important for anyone as it tells people what money they have left to themselves after all their financial commitments are met. You can calculate this by listing all the money that will be going into the bank account that month and then take of all the figures that are being deducted from that same account and the remaining amount left over is known as that person’s disposable income. It is from that figure where a potential customer can then see if they have the financial requirements for further finance. If after assessing financial information a person can see that their disposable income is a large value then they may have to really think hard if they actually require any funding in the first place. However at least in this cases they know an application can be made as they can afford any repayments due on the loan. On the other hand if the income is a low figure or if it simply just cannot cover any instalment owed then more money should not be requested as this will only as a result make that money situation worse.

The best I have found for actually making my money go further is by saving it, this is always a very important factor for a solid good financial future. Practically everyone will have a different income and main money source and some people obviously are unemployed so their take home pay will be much different and loads of different people have different financial expenditure each month so the amount possible to save regularly will be varied. People however in my opinion should try to save as much as they possibly can in order to make that money go further, remember money being saved still belongs to you and it definitely never money wasted. I appreciate there will be scenarios when people’s money is primarily used to support peoples families as such or they are the sole earner in the household will this clearly will be taken into consideration and limited money can be put aside each month until maybe more money can be put into that certain household. It is also quite clear that is someone has a poorly paid job then they will not be able to save as much as a higher earner with limited monthly bill outgoings in the same way whilst people live at home, earn respectable money and pay limited rent they should be able to save much more than someone who does not earn much and have to pay a large amount of their salary for living purposes.

One of the main benefits of saving money for anyone is because some day they can use that money and put it towards or use it to cover a major purchase in that person’s life such as a new car or possible down payment for a Mortgage cost. People who have worked hard in life and have put away a nice portion of their money and have therefore saved it can feel proud that they do not have to borrow any money when making a certain purchase and they can pay for it outright. There can also be times when sudden bills can suddenly arrive for a person and they have to pay out money quickly when it was clearly not expected, here people can use their savings also. This would prevent that person from borrowing a potential short term loan to cover this expense and they can just dip into their savings. Once money is taken from that account however it will be wise to replace it as soon as the person possibly can.