Managing financial challenges

There are a wide range of challenges where finances are concerned from saving to investing.

09:06 21 December 2013

When you have a lot of debt, it is easy to become downhearted about your financial status. Even if you think you will always be struggling, the reality is that there are ways you can manage your debt to try and become debt-free. It may take some time, but there is the ability to change your circumstances. Likewise, if you are in the position to make investments, there are ways to avoid potential financial pitfalls.

• Research—whether you are trying to get rid of debt, or trying to invest it is important to educate yourself about the companies with which you conduct business. Educating yourself about the available financial options also ensure that you can make beneficial decisions for your finances.

 

• Consider timing—if you do not have enough available finances to use for investments, do not let someone talk you into spending more than you can afford. You may have to work on eliminating debt instead of investing. For investments, plan on long term investments so you can get the most benefit.

 

• Credit repair—companies that promise to repair your credit may not be able to do much more than give you recommendations on how to pay off debt. These companies may be able to help you fix problems, but not eliminate debt you legally owe. If a company is offering a 100% guarantee, they could be running a scam.

 

• Collections—whenever possible try to negotiate with debt collectors to pay smaller, more affordable, amounts while still ensuring that the companies receive the finances they need to keep running.

 

• Minimise—one of the ways you can help get out of debt or create more money to invest is to minimize. Getting rid of unnecessary things by selling them can give you a lump sum of cash. Living more cheaply can help free up finances.