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As careful as we think we are being, it can be easy to fall into making mistakes with money. Not everyone has enough disposable income to have a ‘buffer’ available through savings and investments. When you make a poor money choice that comes back to haunt you, it can be terribly scary and sometimes seem like there really is no way out. Fortunately for anyone that has made some bad choices and it in a bit of a situation with money, there are genuinely things you can do to rectify the situation. One of the main things to remember is that if you are in debt, try not to get in any more as this will be counter productive.
Poor money choices – paying too much for bills
Unfortunately, there seems to be a very significant stop in the rise of wages and a very significant rise in bills like electricity, water, and broadband. Many households find ways to supplement their income to have a bit extra each month, like investing online with companies like CMC markets , picking up extra bits of work online or even doing odd jobs. If you are not one of these families, rising bills can make it very easy for you to struggle to make ends meet.
Use a comparison site to find out if you are really getting the best deal on your bills. A lot of people are intimidated by the fact they will have to fill out loads of paperwork if they leave but this isn’t always the case. Another great way to get a better deal is to call the company and say you are thinking of leaving them. 9 time out of ten you will be passed through to someone with the authority to offer you everything they can for you to stay.
Poor money choices – payday loan debt
Payday loans have extortionate interest rates, which is why they tend to pull people who have been refused loans elsewhere in. It is always going to be a temptation for someone with money troubles to apply for a quick fix. Making poor money choices can leave you in an unfortunate situation where you have started to take out loans to pay the loans. Once you start defaulting on payday loans, you really are getting into a downward spiral. The charges can lead you into borrowing more and there really isn’t any end.
Payday lenders, however, are governed by the exact same rules as normal loans or financial companies. They have an obligation to help you if you tell them you are having financial issues. The first thing to do is to contact them directly to see if this can be resolved with them. You may be able to set up a payment plan or come to a payment agreement. If you cannot come to a satisfactory agreement with them, you may wish to contact your local debt management advice service. They will then be able to help you get control of your debt by making monthly payments that are smaller than the payment due.
Poor money choices – making an impulsive purchase
No matter how old we get, we are all sometimes a little bit impulsive and spend too much money on something we shouldn’t. No matter how big or small it is, it could be an item of clothing or a new car, you have rights as a consumer to return this item within a set amount of days. Although retailers are not bound by law to accept any goods back that are not faulty, they all tend to have policies which will take these back as a goodwill gesture. When you make bigger purchases, there is usually a ’30 day cooling off period’ written into the contract, which is the same for some services. For normal, standard items like clothing or TV’s etc, you usually have 28 days to return a non-faulty items.
If the retailer will not give you the money back in cash, they may give you a credit note which could be handy down the line especially if you shop there often. Also you will need to check the retailer’s policy on damaged or open packaging, but this can still be a good way to get out of a squeeze if you have noticed you have overspent this month.
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Disclaimer: This post or any other information on the site is not intended to be and does not constitute financial advice or any other advice. I am solely sharing my idea, plan and progress on financial independence and early retirement.