Managing Your Credit Through The Recession

As the credit crunch starts to bite deeper each day it can be very easy to begin to feel overwhelmed if you have outstanding credit. When the payments seem to fall due faster every month you can often begin to wonder how you will meet them all so here are some tips to help you manage your credit through the recession.

Make a list of every thing you have outstanding. Write down both the balances and the regular payments you have to make. Remember to add on to this list all the things you have to pay such as utilities, phone and insurances etc. Once you have everything written down prioritise them making sure to have your mortgage or rent at the very top of your list.

When you have that list completed make a second list putting down all your expected income for the next 30 days. When you have everything down on this list take the total amount away from the total of the first list. Does it cover all your outgoings?

If not then you will know which bills to pay in which order. It will also allow you to see at a glance exactly how much of a shortfall you are going to have.

If you find that you can’t pay everything take a look at which items are causing the biggest problems. These will usually be things like credit cards where the minimum payments are high but don’t affect the balance very much when you’ve paid them. Total these items up and consider whether you could approach your bank and ask for a consolidation loan.

By adding all your credit and maybe even other small loans you may well be able to reduce your monthly outgoings quite significantly and be able to manage your credit without any further problems. You will also usually be paying a much lower interest rate as well so that your outstanding balances drop a lot faster.

If you are not able to get a consolidation loan for whatever reason you obviously need to consider the other options open to you. Could you for example get a part time job in your local area? Go through your home and find unwanted items that you could sell on Ebay. What you might think of as only old junk could be just what someone else is searching for and you might be amazed at what sells!

If all else fails contact your creditors and do it as soon as you realise that you aren’t going to be able to meet all your outstanding commitments. They know that people are struggling and all the major companies have got teams of specially trained staff waiting to help you. Don’t leave it out of embarrassment or fear as that will only make things worse, get on the phone and get their support. You may be pleasantly surprised at what they can do to help you.