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Three Steps To A Debt Free Life

At shortloans.co.uk we appreciate that people need payday loans for different reasons. As responsible lenders we encourage our customers to use these kinds of loans as an occasional quick fix for those times when you need a small quick cash loan. Used correctly our loans allow you to borrow money for a few days or weeks until you next get paid. Then, you pay us back and you’re debt free again.

Sometimes, however, it’s not that easy and if your previous debts get to the stage where you start to rely on payday loans every month rather than once in a while then you should perhaps look at other solutions to help you sort out your finances once and for all. We’re here to help you raise short term cash when you need to and we’re more than happy to offer this service. But, if you start to use a payday loan every month to shore up your finances then you should look at the following steps for a debt free life:

  1. Look at what you spend…..

Take a long hard look at what you spend every week on both essential and non-essential items. Most people that do this realise that they are actually wasting money on stuff they don’t need and that they could save quite a lot by simply changing their spending habits.

Let’s say that you buy a coffee at a high street coffee chain on the way to work every morning. Your triple shot caramel cappuccino with cream and sprinkles costs you £1.75. Go for a week without this and you’ll immediately save £8.75. That’s £35 a month.

Your lunch costs you on average £3 a day once you factor in a can of drink and a packet of crisps or chocolate bar. This is costing you £15 a week and £60 a month. Once a week you go out with your mates for a drink and usually end up going out to eat -- your average spending here is £20. That costs you £80 a month.

Let’s turn things around. If you skip the morning coffee, stop eating out at work and give your nights out a miss for a month then you could save yourself a whopping £175 a month. Of course you do need to eat lunch but you’ll find it much more cost effective (and healthy!) to take your own lunch to work. All this takes is a trip to the supermarket at the weekend and a bit of forward planning.

The key thing to try to do here is not to spend money unnecessarily. Don’t be tempted to spend money on bargains that you do not actually need, think hard about picking up a packet of sweets or a magazine on the way home from work and hire a video and buy a bag of popcorn to save on cinema costs. Do this for just a couple of months and you’ll be surprised at how much money you can save to get you back on track.


  1. Think about debt consolidation…..

If you find that managing your budget for a while still doesn’t help and you spend your month trying to juggle credit card payments, overdraft charges and bill payments with your daily living needs then you might benefit from a different kind of solution.

In this kind of scenario many people opt to take out a longer term personal loan from a bank or other financial institution. The rates given for this kind of borrowing will generally be MUCH lower than the costs of paying back lending products such as credit cards, for example.

So, you can put all your current debts together and pay them off with a personal loan. This will usually give you a lower repayment to make every month and you’ll have the comfort of knowing that your debts won’t grow any more. This could leave you with more disposable income every month which should make it a lot easier to manage financially.

Do, however, make sure that you can comfortably afford to repay your personal loan -- this shouldn’t be a solution that gets you further into debt. And, make sure to modify any spending habits that got you into debt in the first place such as spending on credit cards and store cards, for example.


  1. Talk to a debt counselling service…..

If you do not think that either of the solutions here will work right for you then your first port of call should be a debt counselling service such as the Citizen’s Advice Bureau or The Consumer Credit Counselling Service (www.cccs.co.uk). You can get free advice here that could help you sort out your own financial situation.

So, for example, you may be given advice on which debt management route to take that best suits your circumstances or how to talk to creditors to try and negotiate some kind of leeway on how your debts are managed. Sometimes you can get lower interest rates, payment breaks, interest rate freezes and even the writing off of some debts.

The advice you get here will go a long way to helping you feel better if you have serious debt issues and you could well find a solution that gets you back on track.