As you welcome the New Year after annual festival celebrations, it becomes difficult to manage your finances. Looking at several reports and surveys posted in the past years, January has always been a difficult month for borrowers. Many people find it difficult to repay additional loans and bills owing to high cash crunch following the festival splurge.
It is very important to act financially prudent and have a credit management plan to restore your credit rating. It would not be an exaggeration to say that you can mend your credit health using 6 month loans. You can indeed consider using the professional guidance of an FCA authorised loan broker for the purpose. They can guide you free of cost on how to manage your loans and maintain good credit health.
Why to have a 6-month financial management plan?
Six months is a decent time frame to improve your credit situation. You can either consider refinancing your very high-cost loans into a cheaper instalment loan or apply for a personal loan to repay high-cost credit balance. Whatever be your choice, make sure you work to make your financial obligations less costly. It is also important to have a very strict budget and curb your expenses. For, becoming debt free should be your goal for 2018.
Using professional advice, you can get help to assess your credit accounts and find out more details on your creditworthiness. Brokers can help you find available online loans in the UK. You can compare and choose the deals. They can also help you frame a debt improvement plan. By following a clearly laid out plan for credit management you are more likely to stay afloat in the stipulated period.
Steps to better credit health
1. Evaluate your debt to income ratio
After you are through with celebrations and travel, it’s time to unpack your bags. You need to evaluate your debt to income ratio. It is important to know how much you can borrow or what is your credit worth at the first place. This will help you plan your expenses. Despite a steady monthly income many times we struggle to limit our expenses. Exceeding monthly outflows is one of the major issues for bad credit.
2. Limit your expenses, Have a budget
Whether you decide to avail an instalment loan for six months or decide to limit your expenses, it is important to have a foolproof plan for the same. You must adopt simple lifestyle changes to limit your outflows. Simple modifications such as converting your high-cost unsecured loans into secured loans or homeowner loan can make debt less expensive for you.
Curbing coffee, alcohol and cigarettes is another healthy way to reduce your expenses. You can go vegan and eat more of home cooked food to save grants every month. Likewise, you can save enough on Car Fuel and many more.
Saving money is more about adopting a lifestyle that favours your financial target. Anyone can achieve it with little planning and willingness for the same.
3. Follow a debt management plan
Last but not the least, you need to repeat the success story every month. When you save hundred pounds every month, you would eventually save 600 or more by the end of six months. This is just an example; you can extend your savings as per your requirements.