‘How do I tackle my money problems?’
My credit card debt got worse over Christmas. I like to dress well, have evenings out with friends and take annual holidays, but I’m 30 and finding life expensive. I’m not saving for the future, which is another worry.
The fear of financial insecurity is a tough one. I have been there quite a few times – a while ago I went to a debtors’ advice group for a year and I picked up some very useful tips.
First, consider a monthly repayment scheme and try to make a start on your debt. Write down everything – every little item you buy. Divide your spending into categories (food, travel, clothes, etc) and see where you spend the most. Then try to take a third off each category (not including your mortgage or bills, of course). Do this for a month and you might bring down some of your costs. After three months it will give you an objective idea of how you got into debt (I’d like to know if life threw you a curveball or you’ve just been overspending).
Consider making some extra money by going around your home and thinking about what you might want to sell – (eBay for homewares, Depop for clothes, Vestiaire Collective for designer pieces). When I feel broke, I tend to try to ‘shop’ in my own wardrobe and be inventive – for instance wearing things that I rarely choose. I take items that I have extravagantly purchased – and, inevitably, have worn the least (cocktail dresses, outfits for weddings) – then try to figure out a way to dress them down. Wear a party dress with trainers, over trousers or with a shirt underneath. It might seem over the top to wear something you spent so much on just for going to work or out for a casual supper, but it will make you feel like a million dollars.
If you are living with few extravagances and still feel the financial crunch, you might consider whether you are being paid enough at work. Should you be pushing yourself in order to get a salary increase? Should you be downsizing your property? Sometimes we fear change so badly that we cannot appreciate the feeling of release and the quality of life that we can get back by making those tough changes. What can you do to alter your circumstances this year?