6 ways to end spiralling spending habits when you have debt

The worse thing about being in debt is not being able to stop buying things you love so much. Big brands have strong marketing campaigns, good at making us feel our lives will be much better once when we buy their products. But don’t be fooled into buying items you could do without. Here’s 8 ways you can end spiralling spending habits when you have debt to pay off.

Use cash rather than your card.
Leave your credit cards at home. Or better still cut them up. Interest rates on credit cards are very high and should only be used in emergencies and when you can afford to pay the balance in full at your next statement. If you can’t, then you might want to consider ditching credit cards for now. You’re more likely to spend a credit card on things you don’t need if you have one on you. The temptation is often too hard to resist.

Have nights in.
Nights in with friends and family can be just as much fun and significantly cheaper than the cost of going to restaurants, movies, clubbing and whatever else you enjoy doing that costs you money you need to save.

Having a good time doesn’t always mean spending lots of money. Stuck for ideas? There are lots of blogs with great ways to spend a fun night in on a budget. Timeout.com, is a great place to find out what’s on for free in your area. All you’ll need is travel money.

Go Budget.
It’s not just cheap nights you can do on a budget. You can go budget on everything.

When you go shopping, do it in the sales. You can learn to cook up healthy meals when you start to budget. Processed meals bought from shopping markets can cost a lot more than buying the ingredients and making the meal yourself. Also, go food shopping on Sunday afternoons just before they close. Supermarkets knock prices down drastically at these times. It’s not unheard of, to buy whole salmon for a third of the price.

Go online for cheap holiday deals. Or why not give DIY a try instead of getting in the professionals. The options are endless.

Think like the Rich
Many a time the purchases people make are liabilities. Liabilities are purchases that cost money and devalue over time. At times, these purchases can’t be avoided. But only make these purchases if you absolutely need to and don’t go beyond what you can afford.

The Rich like to spend their money on assets -purchases that make you money. It even makes better sense to use your short term loan on a purchase that can become an asset in the long term such as property, school fees and business development. The money owed on these purchase are liabilities. So for example, a house minus the mortgage owed is an asset. Your education can’t be taken from you and you can use it to have a good career.

So when you do take out a loan, consider using the money to increase your assets to create positive flows of income in the long term. Many of JL Money customers use their short term loans in this way.

Be happy.

Buying the latest gadget in town is not the best thing to do when you are trying to manage your debt. But, learning to appreciate everything you have is a good thing.

Do you really need the bigger TV when the one you have works like new? Are designer items of clothing worth the price tag now, if later you are going to struggle paying back what you owe on credit.

Even if you are planning on using cash to purchase items, clear your debts first. If you plan towards it, you can improve your overall financial situation and there will come a time when making those purchase won’t cost you more than they are really worth. And you’ll have the last laugh. With planning, perhaps you are able make savings and / or extra income to pay debts comfortably.

Save, save, save.
Yes we’re always talking about saving on JLMoney.co.uk If you’re committed to putting away say 10% of what you earn into savings, then you’ll have less to spend on things you don’t really need but the great thing is you’ll be able to build up a nice nest egg. You can use this to make some investments or even pay off your loans and other debts early.

If you’re thinking of using a short term on a purchase that could turn into an asset, we’d like to help. Call us today on 020 3302 4020.