Nobody likes to admit that their financial health needs to be worked on. It seems like there’s no way when you have money issues, and it can be even worse if you don’t have the spare income to work your way out of it slowly.
But there are some small changes and things you can do to ensure you’re financially healthy and free from an adverse credit score. During this article, we’re going to share some of the options you have at your fingertips that can help you take control of your finances, so you have a great outlook for 2021.
A Guarantor Loan for a Bad Credit Score
Guarantor loans are an excellent option for those who wish to improve their credit score, so if you’re one of those people, then you should look into taking one out. The way a guarantor loan works is that you apply for one with someone else who acts as your guarantor.
The loan works the same way as a normal one where you would receive the amount you apply for and then pay it back in monthly instalments. However, should you default on a payment (not able to pay it back), your guarantor is responsible for paying it back on your behalf.
Lenders are more comfortable with offering this type of loan because a guarantor gives them security knowing that they’ll get their money back.
Set Yourself Some Realistic Goals
Whatever you’re looking to work towards, setting yourself some realistic goals is the only way you’re going to succeed. If you don’t lay out the specifics and organise them into goals, you’re going to have some difficulty in motivating yourself and staying on track.
You should track your goals over time so you can see your progress. There are many websites out there that offer tools which can help you monitor your financial health.
Explore Additional Sources of Income
Financial issues may arise if you have more outgoings than the amount you earn from your job. If you’re sticking to a monthly budget and not spending money on things you don’t really need and still finding that you can’t make ends meet, you may want to explore additional sources of income.
Having more money will provide you with more financial stability, especially if you’re single and living alone. If you can’t get a higher paying job, try to generate some passive income on the side.
Put Some Money Away Each Month
Like passive income, saving is another passive way of improving your financial situation. To take control, you should open an interest-bearing savings account and put money into it at the start of each money when you get paid. But always make sure that you leave enough money to last you the month.
If You Have a Credit Card, Stop Using It
If you are financially struggling each month, you might be relying on your credit card a bit too much. If you use it as a plug for the financial gap each month then you’re only going to end up in debt, and you certainly don’t want that.
It can limit how much money you have to pay your bills or work towards another financial goal because you’ll be tied to making the repayments.
Give a Spending Fast a Go
A good way of completely curbing your spending and getting your money in order quickly is by going on a spending fast. This is where you stop spending money altogether for a set period of time.
It’s a good way of completely cutting your spending but do make sure that you pay your bills on time to avoid any extra charges because then it would make your spending fast pointless.
Make The Most Of Your Workplace Perks
In addition to all of the tips we’ve shared, the company you work for may offer some perks that you can take advantage of to further save some money.
Some of them might not actually be worth anything, but some can reduce the need to pay out for essential expenses. Take some time to evaluate what options you have available so that you can make the most of your workplace perks.