Draw up a monthly budget that shows you how much money you have left once all your bills have been paid. Ensure you stick to your budget, otherwise continued overspending will put you back in the red and cost you money in fees and interest charges that you can ill afford.
Keep a running total of how much money you have available to spend and deduct your spending as you go along, particularly making note of those cash withdrawals from the hole in the wall, as they are easy to forget.
Keep your financial records such as bank statements and credit cards in a file and tick off the entries each month. As well as enabling you to keep track of your finances, you will also spot any fraudulent activity on any of your accounts and nip it in the bud.
Get out of the habit of relying on credit cards. If you are planning a holiday or want to enjoy Christmas without getting into debt, why not start saving for such events on a weekly or monthly basis in a separate bank or building society account?
Make use of 0% credit card balance transfer deals or low rate balance transfer for life offers, but don't use the cards for anything else! Put them away somewhere safe away from temptation.
If you intend switching from one 0% balance transfer deal to another, ensure you apply for your new card at least six weeks before your current deal expires, otherwise if you don't have a new card to switch the balance to, you will start paying interest charges.
A personal loan can be used to repay credit card borrowing, but if you decide to take this route, ensure that you close the credit card(s) accounts and destroy the cards, otherwise you may be tempted to spend on the plastic again and you'll be taking one step forward and two back.
If you take out a personal loan with your bank or building society, don't let them push you into taking their expensive payment protection insurance (PPI). You can get cover much cheaper from independent providers such as paymentcare.co.uk or britishinsurance.com
Don't bury your head in the sand; if you know you are in financial difficulties talk to someone about it. If you ignore it, it will only get worse.
Talk to your bank or building society to see if they can help you with your financial situation; alternatively you can speak to a your Citizens Advice Bureaux or the Consumer Credit Counselling Service (CCCS).
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