Are you sick of being in debt? Do you want to turn your financial fortunes around? If so, you have landed on the right article.
Nobody likes being in debt, yet it is a problem that many people currently face. The Balance has spotlighted that, at the end of 2019, US consumer debt sat at a staggering $4.19 trillion – an increase of 6.3% on last year’s figure. The reason for this debt is down to three main reasons:
- Credit card debt
- Auto loans
- School loans
While US debt seems only to be going in one direction, that doesn’t mean you cannot buck the trend. To assist with doing just that, consider the following four ways to become financially secure in 2020:
Consolidate your debt as quickly as possible
When you have debt, you must tackle it head-on. There’s no point avoiding it and leaving it to mutate into an even bigger issue.
To do this, you should consolidate your debt. Grab all of those individual debts and turn them into one, more comfortable to manage monthly payment. This way, you will also know exactly where you stand with your debt, which means you can put together a better plan to eliminate it.
Develop an emergency fund
Even if you are going fine with your finances, this could quickly come crashing down if you are hit with an urgent medical, vehicle repair, or home improvement bill. As a result, you should plan for such potential problems with an emergency fund.
If you don’t quite have the finances to put together an emergency fund just yet, there’s no need to worry. An alternative in the form of small loans is available. As Cash Lady demonstrates, a small loan can be utilized to cover any urgent expenses adequately. Plus if you pay the loan back quickly, you won’t suffer too much from added interest.
It’s an obvious point, but it is one that still needs to be highlighted. When you’re attempting to become financially secure, it’s necessary to cut out any excess spending. This includes the likes of:
- Using online casinos and bookies
- Dining out at restaurants
- Buying more than you need at supermarkets
- Going on nights out
- Planning excessive holidays and Christmas celebrations
- Buying items that are not essential
See what bills can be reduced
Concerning the previous point, you also need to look into ways of reducing your bills. To begin, look at those recurring expenses that are no longer required. Have you stopped going to the gym? Do you rarely use Netflix? Is that Spotify account sitting around doing nothing? If so, it’s time to stop them burning a hole through your bank balance.
Alongside this, take the time to carefully analyze those mandatory bills such as electric, gas, water, car insurance, and broadband. See if you’re currently getting the best bang for your buck, or if it would be worth switching to a different supplier.