If you are struggling financially one of the main reasons for this may be that you are not in control of your money. You may not have a good understanding of how much you have coming in each month and how it is being spent.
Given this situation it is not surprising that you never seem to be able to get on top of your debts. It does not have to be this way.
Using some simple money management techniques such as working out what you can actually afford to pay towards your debts, how to manage your money throughout the month and even how to save a little will mean that it is possible to get back in control of your finances.
How to calculate your disposable income
The building blocks of sound financial planning are understanding how much money you have coming in each month and the budget you need to cover your regular living expenses. Once you are aware of these two things you can work out your disposable income. This is the amount you have left over which can be used to achieve the things you want. This may be the repayment of debt, increasing your savings or buying things without the need to use credit. A guide to help you calculate your disposable income is available here.
How to manage your money
Having a good understanding of your income, living expenses and disposable income on paper is all very well however when it comes to the real world managing your money on a daily basis so you always have enough to cover the bills you need to pay and do not overspend needs specific focus. In order to achieve your goals of repaying your debts and even putting some cash aside for a rainy day there are some practical things that you can do. Information about these is available here.
How to save
Having some money saved will help you remain in control of your finances. Rather than having to borrow more in an emergency you can fall back on your savings. You can use savings to buy things more cheaply because you do not have to use credit and repay interest. In addition money you have saved can be used to repay debts faster because you can offer lump sum settlements to your creditors in return for them writing a percentage of your debt off. If you just manage to save a little each month this can make a big difference over the long term. However saving is never easy particularly if you are on a tight budget. Some techniques you can use to help you save whatever your budget are available here.