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How to Regain Control of Your Personal Finances

12 April 2018 No Comment

For most people, it doesn’t take much to cause them to feel like they have lost control of their finances. A large, unexpected expense can be the catalyst for a series of events that snowball into an unmanageable situation.

The good news is that you can take back control of your finances if you are just willing to roll up your sleeves and get to work. Some solutions are easy and some are hard. Most importantly, you don’t need to sit back and watch your personal finances spiral out of control any longer.

Here are some great solutions if you want to regain control of your personal finances.

Refinance Debt and Save on Interest

A lot of people think of debt as a bad thing. The truth is that not all debt is bad debt.

A mortgage gives you a home to live in and a piece of real estate that could appreciate in value over time. Student loans help you get an education that can greatly increase your earning potential over your lifetime.

However, some loans have interest rates that can make them unmanageable. For example, rates on student loans can increase substantially after graduation. Refinancing these debts into lower interest loans is a great way to quickly reduce expenses.

Comparison shopping different lenders is a great way to ensure you get the best rate possible. Instead of visiting every bank and lender in your city you can actually have online services do the comparison shopping for you so you can have all the options right in front of you instantly.

Start Budgeting Every Single Expense

Most Americans don’t keep a budget. Some that say they do actually just keep track in their head. For the record, that doesn’t count.

Building an actual budget on paper or using available software is the key to getting your expenses under control.

Seeing all of your monthly expenses laid out before you can instantly reveal areas of improvement. Of course, some expenses won’t be so easy to cut. There will be tough decisions but if your personal finances feel like they are out of control then cutting back on monthly expenses with a budget is one of the first things you need to consider.

Avoid Credit Cards and Payday Loans

Credit cards and payday loans are forms of high interest debt that can only worsen your situation. In fact, you may already be experiencing the pain that they can cause.

This is not to say that you should never consider using a credit card. They can be valuable tools when used correctly.

The issue with credit cards and payday loans arises when they are used to get you out of a financial bind.

They provide short term financial relief with long term negative consequences. That payday loan meant to get you to the next payday will likely have to be renewed. In fact, a lot of people spend 83% of the year paying back loans to payday lenders.

Not exactly the short-term arrangement they originally had in mind.

Make a Plan and Stick to it

Getting your finances under control will not be an overnight success. There is some hard work ahead of you. The good news is that each little success will snowball as you continue to improve your financial situation.

Before you know it you will be feeling more stress free and confident when it comes to your finances.

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