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We’re all thrifty when it comes to big purchases. We don’t jump into massive expenses without thought, and we rarely spend large amounts in one go. It’s the only real way to keep hold of money when you’re on a low income.
But, many of us face money troubles, even when we’re careful. So, where does the problem stem? Often, small expenses pack a nasty punch. Worse, we don’t see it coming. These are the small monthly expenses we don’t think twice about. And, because we don’t think about them, these are most dangerous of all.
To judge whether you have a large issue with small expenses, look at your direct debits. Notorious problem areas include –
Charity donations (we hate to say it, but these count, too.)
The majority of us have most of the above. Generally, they cause no issues. Direct debits are a wonderful invention which save hassle. That is, of course, until you don’t have the money in your account.
A direct debit is a contract between you and a service. Hence why you receive a confirmation agreement each time. Far from being a simple convenience, this is a commitment to pay on a set date. And, if you fail to make that payment, things can snowball fast. Plus, if you fail to make one payment, the chances are that you’ll fail to make your others, too. As such, you’ll be in big trouble.
If you think you would never defect, think again. Even the most money savvy people lose track of direct debits. These amounts are so small that we barely notice. As such, we can easily miss if they don’t go out. Perhaps you assumed the money had already gone and cleared your account. Or, maybe there was a genuine error. Either way, non-payment is no way forward.
If you miss all your payments in one month, you’re looking at a hefty sum. The chances are that all your bills together add up to over a hundred. Include those small expenses, like the extra $8.99 for Netflix, and you’ll soon be in over your head. Then, you find that you can’t afford to pay double next month, so you miss another payment. Hence, the snowball’s in motion.
But, what can you do? The main thing is to remove debts as fast as possible. It’s a snowball’s nature to gain weight as it rolls, and that’s what your debt will do. Late payments come with a fee, and that only gets worse the longer you leave things. So, contact a company like Nationwide Debt Direct, who can help you settle on the least possible payback amount. Plus, they can help you clear those debts within 12-36 months.
Then, do everything possible to make sure the same doesn’t happen again. Make a note of all the payments for each month, and keep it in plain view. Then, check your statement to ensure everything’s paid before going on a shopping spree.