Boss your

Finances

& Dominate

your Debt

Remember when you were a kid and you had literally zero financial responsibilities other than your weekly 10p Pick a Mix fix?

They were the days weren’t they?

Ahh They really were...

Then all of a sudden you’ve finished Uni with a sack load of student debt and you’re left wondering where it all came from?

How on earth am I ever going to shift this?

Or perhaps you took out a credit card to help finance your car insurance or a holiday and failed to pay it off before that 0% interest rate period finished…

Then slowly but surely, you racked up some debt.

Yikes!

Regardless of how you got yourself there, debt can be a scary business. It can leave you feeling stressed, trapped and down right low.

Empty out the ‘laterbase’

But debt can easily be dealt with if you act sooner rather than later. Filing these issues into the ‘laterbase’ is how you get into serious financial trouble.

Procrastination is your worst enemy and it goes hand in hand with debt.

Debt thrives and grows when you sit back and tell yourself ‘ahh I can’t be bothered, I’ll deal with it tomorrow’. You are just feeding the monster.

As soon as these lazy thoughts begin manifesting in your head you need to grab one of your hands, raise it up to eye-level, and slap yourself across the face.

The quicker you deal with debt, the quicker you can start building a solid financial future and live your best life.

It’s not all doom and gloom...

As bad as debt can be, you’re not the first person to experience it nor will you be the last. 

You’re actually not as lonely as you may have first thought.

But you need to act sharpish to make sure your debt doesn’t spiral out of control, so here is a bunch of MoneyMog tips to help dominate your debt and show it who's boss!

Budget, Budget, Budget

This is so basic, but so many people don’t do it and it’s a big cause of so many financial troubles.

You need to know what’s coming in and you need to know what’s going out. It’s as simple as that.

Take a look at all of your outgoings, particularly those unnecessary monthly subscriptions, do you really need them?

Take some time to work out your budget and do your best to stick to it.

Your income less your necessary bills gives you your disposal income.

Divide your disposable income between savings, emergency and fun money at a ratio that suits you.

Addicted to Contactless?

We’ve all been there…It’s Friday night and you’re at a busy bar ordering a round of drinks, the server presents you with the card machine and says “contactless alright?” you pull out your plastic and slap it against the machine and you’re done in a matter of seconds, while at the same time, having no clue how much it even cost.

It’s all too easy to whip out your bank card and make a payment. 

Paying for stuff has gotten so easy, hasn’t it?

No wonder our grandparents and ancestors were so good at saving money, they had to get on a bus and travel 9 miles to the nearest cash machine or write out a cheque.

All those contactless payments add up to significant amounts over a period of weeks and months. 

MoneyMog Tip - Find a bank with a decent app which will clearly show how much this spending is racking up.

Paw-Busting Interest Rates

Interest rates are the real killer with credit cards.

If you’re carrying some credit card debt, then consider transferring the balance to a credit card that offers a 0% balance transfer period, then divide the total balance between the number of months.

This will tell you how much you need to pay each month to clear it before that 0% interest rate period vanishes.

Most importantly, avoid all temptation to use this credit card for anything else! Keep your sticky paws off it until it’s cleared.

Perks, Perks, Perks 

If you’re searching for a new credit card look for ones that give you perks that you’ll actually use. If you’re a 25 year old single man - taking out a credit card that gives you Store Vouchers at MotherCare probably isn’t going to be so useful.

Lots of credit cards give you some great perks that will help you save money in the long run, such as cashback or points that can be converted into vouchers for shops, airlines and hotels.

Snowballing

Remember when you discovered that if you rolled a normal sized snowball in the snow it got bigger and bigger and bigger? It was a great day, wasn't it? Well, it was until one of the bigger kids launched one of theirs in your face because yours was too big to pick up.

Anyway back to my first point, a similar snowballing technique can be used on your debts... 

Debt expert Dave Ramsey says that you should make the minimum payments on all your debts apart from your smallest debt. 

Pay as much as you can each month toward your smallest debt until it’s gone. Then repeat on the next smallest. 

Crossing off those smaller debts first and booting them out of the park, no matter how small, builds momentum and creates a snowballing effect which gives you a sense of accomplishment and help you stay motivated!

Final thoughts?

Move your butt and deal with your debt while you’re still young, your future-self will be forever grateful and it will enable you to invest quicker and reach financial freedom faster.