Managing Your Finances at Christmas

One of the things that used to be an issue for me was sticking my head in the sand when it came to finances.  Particularly at Christmas.  I used to be in debt but at Christmas, at time where I love to splurge on my loved ones, that debt went to the back of my head and I spent what I wanted..

I know that this is something that many of us do, especially in the holiday season.  When January rolls round, our head comes out of the sand and we realise yet again that we have overspent and gotten further into debt.

This happened to me.  It happens to many people.  It took me seven years to sort out my finance problems and along the way I have learned many lessons, a couple of which I will share with you.

Please note that I am not a financial expert, nor am I qualified to give financial advice.  I am writing this blog today because people do not talk about being in debt.  We gloss over the subject, we hide the problems in shame.  I was that person. In debt more than I could handle, through my own fault.

The first tip.  Do not panic.

When I (finally) took my head out of the sand I had no clue what to do, and went for the first option available which is hindsight, was the wrong thing to do. I panicked and ended up paying out far more as a result.

Once you have realised the extent of your money problems, you need to look at the different options available to you in order to resolve them.  

One of the most stupid things I did over one Christmas period was to hit the payday loans.  What I didn't think about was the huge interest rates involved and how far it can escalate.  If you get into this kind of mess what you can do is look at a payday loan consolidation company.  They look at your budget, sort out with you what you can afford and deal directly with your creditors.  Sometimes, as I found, it can all be too much so someone dealing directly with your creditors can be a huge weight off your shoulders.

Another option is a debt management plan.  

My error was that I did not research debt management plan providers and just went with the first one I found.  This ended up costing me over two thousand pounds by the end in admin charges.  

What I know now is that there are free debt management plan provides which do exactly the same job.  They work out what you can afford, negotiate with your creditors and work out a plan for you to pay off your debts, often with the interest frozen.

I would suggest contacting the Citizen's Advice Bureau who have loads of advice on the subject and the link I have put in goes directly to the free providers of debt management plans. 

If you owe more than ten thousand pounds, you could go into an IVA (Individual Voluntary Agreement).  You can get free advice on this from the Money Advice Service.  This enables you to get around 70-80% of your debts written off, and the remainder is handled by an insolvency practitioner (you will pay for this service).

I hope this helps a little for anyone reading through who has only just pulled their head out of the sand and is, as I was seven years ago, in a blind panic.  Don't panic.  Research.  Make use of the free resources available.  

You will get through this.  I did and so can you.

*Collaborative Piece

3 Things To Do Online To Relax

Anyone who knows me, knows that I am quite driven when online.  I like to kept abreast of the news, what is going on with social media; catching up with friends; writing blog posts; reading opinion pieces from writers I enjoy.

The thing is with all of that is that too much of it can mash up your head and fill it with too much information at once.  

It is important, especially for me, to remember that there are normal, fun things on the internet and relaxing things to do that have nothing to do with reading all the latest news bulletins and wanting to bang your head against a wall.

Here are the things I do online to have fun and relax:

YouTube Videos

I confess.  I am a bit of an addict to online makeup tutorials.  I don't put much of them into practice to be honest as I do not have the skills or all the fancy brushes and brands to recreate the looks; but I love watching the videos.

Also, funny animal videos.  You have to love them and find me one person who does not relax when watching a cute dog doing something funny in a video.

Listening to Music

While I am a complete 90s dance woman, when I want to relax, my go to music is piano based classical music; preferably from new artists that I have not heard before.  They can take my mood from stressed and overcome, to a mood of absolute calm and tranquility.

I highly recommend checking out Soundcloud for finding new artists.  For a personal recommendation, I particularly love IIya Beshevli who is a 23 year old pianist and composer from Siberia.  His piece Fairytale Castle is just magical.  

Games

I cannot play games on my phone.  After getting to a great level on Candy Crush and subsequently going back to level one again when I changed my phone, I am done with the game.  Done.  It literally crushed me.  I also don't understand the thrill of finding mythical creatures when I walking to various destinations.  I want to reach my destination, not be surrounded by Pidgeys and Ratatas.

For me, I love retro games and low level betting on formula one races and the outcomes of various events like the US presidential election.  I enjoy sites like Boomtown for online gaming and old classic games like Crypt Raider.

It may also help that a lot of those kind of games also have cheat sites which tell you what to do if you get really stuck.  I am looking for relaxation after all!  Shush!  Don't tell anybody!

What are your online relaxation go tos?

*Collaborative piece

5 Simple Ways to Reduce Your Energy Bill This Winter

We're approaching the end of the year at break-neck speed, and that means many different things to different people. For some, the winter months mean festive cheer and fun family celebrations with the people you love most. For others, while those happy thoughts are in the pipeline, there's a more pressing concern to worry about in the form of impending winter energy bills.

During the colder months of the year, we find ourselves consistently struggling with bigger, more worrying expenses. As the weather gets colder, thermostats are cranked all the way up, and we spend a lot more time indoors, watching television, using electricity, and avoiding the outdoors.

The good news is that if you're dreading a painful energy bill in the New Year, there are things you can do to begin cutting down costs. Here are some simple and effective ways to bring your energy expenses down to a minimum.

1.       Switch Energy Providers

Changing energy providers can seem like an unnecessary waste of time and effort. Most of us would rather avoid the complexity involved with calling up our supplier and explaining why we no longer want to use them for our electricity or gas. On top of that, you also need to spend extra time looking for an option that's cheaper and more effective.

Though switching can seem like a pain in the neck, the truth is that changing to a more effective provider for your needs could save you hundreds every year. All you need to do is get online and check out a few energy comparison websites. It's that simple.

2.      Pay Bills by Direct Debit

Rather than waiting for your energy bills to come to you in the post, and then trying to find the money to pay for them in a mad rush, you could always set up an account to pay a certain amount each month. This is often a much cheaper way of doing things. With a monthly direct debit, your supplier should be able to estimate yearly usage and spread your bill over 12 months too.

You'll probably overpay a little during the summer months when the weather's good, but this also means that you should be able to store up extra credit for the winter. Just remember to call up now and again and give your supplier an accurate meter reading.

3.      Stop Leaving Things on Standby

How often do you go out to pick up your shopping, or work at your 9-to-5 job, while leaving various electronics on standby around your home? You might leave your television playing to itself, or even a few light switches turned on around the home.

While this might not seem like much of a problem, leaving your devices on standby does drain your cash quicker than you might expect. Most households waste around £30 a year leaving their devices on standby when they're not being used. While this doesn't sound like much in the grand scheme of things, it's enough to make you think twice about turning things off when you leave home.

4.      Turn the Heating Down

The concept of turning the thermostat down a notch or two when you can see the frost building outside might seem like madness, but the truth is that it could do wonders for your energy bills. 

Ultimately, you should never put yourself in a position where you're freezing, or risk illness, but if you can simply reduce your thermostat slightly and throw on a jumper instead, then you could save a lot of money.

Try wrapping yourself up in a nice warm blanket the next time you're feeling chilly, instead of cranking up the radiators and taking your layers off.

5.      Change to a Smarter Thermostat

Finally, if you've got a little cash for an initial investment, or you can afford to take out a personal loan, then it might be a good idea to switch to a smarter heating system in your home that allows you to place your radiators on a timer. This way, you can make sure that you're only heating your property when you're going to benefit from the extra warmth.

Timers on your thermostat can ensure that you don't need to leave your heating running all day when you're out at work just, so you can come home to a warm flat or house. Your thermostat will naturally turn itself up at a certain time each day so that your home welcomes you back with just the right amount of heat.

*Collaborative post