Moolr.co.uk | Short term loans

Ways to Avoid Using Your Overdraft

An overdraft is a handy tool for many of us that allows us a bit of leeway when money is tight. It feels almost like a free loan until you are back on your feet. However, it is important to be aware that using an overdraft is usually not free and can be a gateway to further debt. It always better not to use it. Moolr look at ways to avoid using your overdraft.

Check your bank account regularly 

This one might seem obvious, but you would be surprised at how many people do not check their bank account regularly. All types of things could be happening without the account holder’s knowledge. Or more pertinently, people can lose track of where they are financially. You could go into your overdraft without even knowing it. Nowadays, every bank has mobile banking and an app that can be downloaded on your phone so you can easily access your latest transactions. The more frequent you check your account, the more up to date you will be with your spending. Thus, you know how much money you have to play with. 

Stick to a budget

Having a budget is one of the best ways for keeping track of your money. Budgeting how much money you will spend on food or your nights out will allow you to see how much money you can spend weekly. Consciously you will become more aware of how much things cost and you will be more likely to stick to it. For example, when you take a shopping list into Tesco, you are more likely to buy what you need instead of what you want. This is a similar thing, as you will learn to live within your means so you are less likely to overspend. 

Use cash not your card

Last year, I paid for a supermarket shop with cash, and the member of staff that served me said I was the first person she had encountered that day to do so. Yet I still prefer to pay for as much as possible with cash, as I know where I stand, and I spend what I have.
Contact-less cards have made spending so much easier, as have all card machines in a way. Having physical money in your hand makes it more real and you can see what you’re spending it on. When you spend on a card, it sometimes feel as though you’re not really spending your own money. Or if you are, it is on tap, and you can find the funds another time.

Save if possible

If possible, look beyond being debt-free. Look towards having a safety net, however little that may be. This helps you when you get an unexpected cost. And we all get them at some point. Don’t put your quality of life at risk by saving money, but if you can afford to put a few pennies away, then do so. If you are comfortably saving extra funds, it could be worthwhile putting savings into a separate account. I have done this to pay for holidays. It took the pressure off when I had to pay the holiday off. 

Earn More!

Well we would all like that! But if you can again avoid reducing your quality of life, short-term it could be worth taking on extra work to keep your head above water. It is all about life balance, and not building up dents that you would struggle to repay.

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