For most of the year, households have consistently slashed their monthly spending in response to reduced income or job losses. Now, with the resurgence of the coronavirus, USA Today reports that requests for unemployment assistance have leapt to a staggering 853,000 filings, a clear and distressing sign that companies are continuing to hand out pink slips.
Reaching out to overwhelmed Americans throughout the country, and with average working people dismayed by the economic crisis they find themselves in, Harrison Funding offers new answers on how to manage credit card debt.
The finance company also suggests some other practical ways householders can take control of their finances, such as coordinating family budgets and producing more while consuming less.
Get Rid of Your Outstanding Credit Card Balances
A debt consolidation loan can help you pay off your high-interest credit card bills at a faster rate than if you were to pay off each invoice diligently every month. You will no longer have to worry about your balance carrying over into the next month, with this cycle continuing month after month.
Although you intended to pay off your credit cards every month to avoid high-interest charges, hoping to enjoy the convenience of a credit card and cash back rewards, you may have fallen behind in your payments, resulting in your outstanding balance rolling over from one month to the next, forcing you to struggle to come up with the money you owe your creditors.
By paying off everything with a consolidated loan once and for all, you’ll get off this wheel of misfortune and never have to worry again about catching up with last month’s remaining balance.
Set Up Weekly Financial Meetings
In any successful business, a weekly financial meeting helps key players in the company’s financial affairs get updates on the company’s inflow of income and outflow of expenses. This meeting keeps everyone on track, perhaps even helping to increase revenue streams and reduce expenses.
You can borrow this idea to manage your own family budget by arranging a weekly financial meeting with your spouse or other decision-makers. Reviewing and testing what is working and not working every week with your household budget will help your family make better financial decisions.
Produce More, Consume Less
Although personal financing can be complex, the underlying principle is fairly straightforward: increase income and decrease expenses.
So long as you have more money coming in than flowing out of it, you will manifest a positive cash flow. In truth, it doesn’t matter how much or how little you earn–if your expenses exceed your income, then you’ll have financial problems.
The solution to stem negative cash flow is to produce more and consume less.
Here are some ways you can produce more:
- If you are working for a company and have a fixed income, then you can produce more by positioning yourself to be next in line for a promotion, by rearranging your schedule to make time to accept overtime shifts, or by hitting quotas that make you eligible for bonuses and rewards. If none of these options are available, you can increase your productivity by starting a side hustle.
- If you have your own business, then you can produce more by increasing the rate at which you complete your client’s projects, by getting more clients, or by learning more about your field of expertise to increase your value to the marketplace.
Here are some ways that you can consume less:
- Stop spending money on things that only provide transient value, things that you purchase to pick up your mood. Instead of relying on retail therapy to feel good about yourself and your life, find free ways to boost your mood.
- Start paying with cash more often than you use your debit or credit cards. The ease of swiping a card through a cash register makes you far less conscious of your spending habits. Counting out your money to buy something increases your awareness about spending and decreases your urge to spend as much.
In conclusion, instead of struggling with money issues, focus on a systematic way to repay all your debts, arrange weekly family budget meetings, and get better at producing more and consuming less.