Bumpy Road Ahead in 2008

10th January 2008

Many people are suggesting that 2008 is going to be a rough year regarding personal finance, so now is the time to get ready for the bumpy road ahead.

Here's a guide to taking control of debts and how to make better financial decisions in 2008.

1. Write a list of all money owed (cards, loans, overdrafts, friends/family etc) – Then the hardest bit is over! Countless people are aware they have financial problems, but are not prepared to face up to them.

2. Make a list of your monthly expenditure (without credit cards and personal loan repayments) and ensure you develop a monthly allowance for yearly expenses such as road tax, presents and holidays, instead of having to pay for them with one month's earnings. This is where the problems start!

3. Take the total monthly expenditure from your monthly earnings to confirm the amount you can afford every month for repayments.

4. Be aware of how much interest you are paying on credit cards and be realistic about the amount of debt you can pay off.

5. If you are repaying existing credit card debts, make sure you cut up the cards and close the accounts to ensure you don’t use them in a moment of weakness.

6. When you know the exact amount needed to borrow, look at the refinancing solutions that are available to help you to get back the control of your finances.

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