The Four Vital Budget Mistakes
Posted July 19th, 2007 by debt guru
You’re in serious debt. You scrimp here, you save a penny there and you’re still not seeing the difference? Where could you be going wrong? Here’s the four big mistakes people make when attempting to budget which leave them with more debt:
- Paying the wrong bills
When you’ve got bills coming out of your ears – which one do you pay first? When it comes to debt we can divide them into two categories: priority and non-priority. Priority debts are the ones that have serious consequences like losing your home or going to prison if they don’t get paid and include mortgage, rent, parking fines and council tax. Non-priority includes things like unsecured loans and phone bills. - Scrimping on the wrong things
Have you found yourself skipping things like getting that strange noise coming from your car looked at or getting a constantly dripping tap fixed? Bad idea. Before you scrimp on anything, ask yourself if it’s something that may cost you more money down the track to get fixed or potentially dangerous if you leave it. - Opening up new credit cards
Despite being in debt, many people continue to open credit card accounts – lured in by the illusion of lower rates and fees. Another credit card wont help pay your debt. Cutting up your credit cards and stopping unnecessary purchase will though. - Getting sucked in by a quick fix
There’s no quick fix to debt. Yes, getting another loan will get creditors off your back – but you still have to pay it. If you’ve got large debt over £15,000 and still getting loan after loan as a quick fix, it’s time you looked at a solution for serious debt like an IVA. It’s a more realistic payment option for large debts and could benefit you. It’s best to call Debt Advice Trust first to talk about it.
