How To Fresh Up Your Finances During this Spring

Spring isn’t just the season to clean out your closet and your cupboards. It’s also a great time to organise your finances for the year ahead. If you are drowning in debt or simply want to start saving, now is the time to get your finances in order. Here is a step by step guide to starting afresh this spring.

1. Do a Credit Check

If you have buried your head in the sand since January, it’s time to face the financial facts. The first step to dealing with debt or trying to step up your savings is to know where you stand financially. There are many websites that allow you to analyse your finances and provide you with a credit score based on your spending history. This will change over time so it is advisable to check your score each year. If your credit score is low there are a number of ways to rectify this but it will take time to change.

2. Set Financial Goals for the Future

Once you know your individual credit score, you can then put goals in place to improve it. The goals you set may depend on personal objectives for example a vacation, a wedding or buying a house or a car. For some it may just be to pay off a credit card and become debt free by a certain date. Once you have established your financial goals, give each one a time frame and then create a list in order of importance.

3. Create a Budget

If overspending is your downfall, a budget can help you to stay within your limits each month. Create a list of the money coming in and the money going out of your bank account and work out how much you have left over if any. Amend your budget regularly and make sure that it’s realistic.

4. Assess your Debt

Make a note of how many cards you have to pay off and the minimum payments on each one. Make a note of the interest rates and then put them in order, paying the most off the cards that boast the highest rate. Allocating a larger sum of money to the cards with the highest interest rates will help you to clear your balance quicker. Once you have a clear picture of the amount of debt you have to pay off, it is time to come up with a debt management plan.

5. Talk to the Experts

You may not be sure how you got into your current financial situation but you can rest assured that there is someone that knows how to get you out of it. If you are in debt and are struggling to keep your head above water, your next step is to seek professional help. If you have got to the stage where you are receiving letters at home and phone calls at work, a debt specialist can help to take the pressure off and provide you with smaller repayments that you can afford.