Now that the recession is over it is time to take a look at your personal finances and devise a plan to get your family back into a comfortable place. Perhaps you lost your job or home during the recession and have a large amount of debt that keeps you awake each night, the article on Huffington Post details how to tackle your finances and put your family onto the road of recovery.
Organize your finances – You need to know how much debt you have, who is charging you interest and who you owe the most to before you can devise any plan to recover. Once you know who where your debts are you need to make a list of the ones that you need to pay off and in which order.
Eliminate Debt – Pay off the debts that are charging you the highest interest first, then the ones that are adding additional charges next. If you have no debts that are killing you with interest and charges then start with the little ones and work your way up to the bigger ones.
Damage Control – Now that you have no debts left you need to see what damage the debts have done to your credit score and follow steps on repairing your credit score.
Future Planning – Once you are organized and have a budget, make sure that you have allocated money towards savings, even if it is only five pound a month, once you are finished sorting out your debts and bad credit score you will be in the habit of saving, making it easier to allocate the money spent on debts to saving and setting goals for future purchases which will keep you financially secure.
These steps may seem like they are difficult to implement, but with dedication and determination you will soon find yourself securely on the road to financial freedom.
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