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5 New Year Resolutions for Financial Improvement

Learn about healthy finances

One of the first things you should do is take a hard look at your current financial situation. What do you need to know before you can start making improvements?

From here, we suggest that you begin a research phase: talk to your trusted friends and family, seek professional advice, and read up on what other people in your situation have done to progress financially.

It is also important that you become not only aware of how to spot financial red flags. This is so if your situation starts to get worse you are more likely to notice before things get too out-of-hand.

An additional tip: Make notes of your findings and keep them in a safe place to review from time to time.

Improve your credit file where possible.

If you are trying to improve your finances in 2022, you may want to consider looking into your credit file and seeing if any changes can be made.

Here are some starting points for improving your credit score:

• Join the electoral roll;
• Make sure your credit file is accurate;
• Start to plan an affordable way to pay off your debts;
• Set any direct debits for your priority bills to be taken out of your bank account that day after pay-day, then it is less likely that you will miss a payment!

An additional tip: Sign up for monthly credit file reports from a site like Experian. They offer both a free and paid version. This will allow you to easily monitor your progression and act as a reminder that you set this new year's goal.

Start to pay off your debts

Debt can be overwhelming sometimes, which is why it is important to start paying it off as soon as you can. If you’re not sure where to start, make a list of all your current debts. Who do you owe money to? How much do you owe?

Afterward, you may want to consider if you would like to tackle these debts yourself or if you would prefer professional help. Here at Consolidation Express, we can support you in making sure you choose the best debt solution for your situation. All of our advice is honest, confidential, and has your best interest at heart.

We offer debt consolidation loans for people who are seeking to pay off multiple unsecured debts. We consider all credit histories when people apply for a consolidation loan with us – even low ones! Additionally, our online application is designed so that it will not harm your credit score, therefore you have nothing to lose by applying!

An additional tip: The sooner you can start to pay off your debt, the better.

Set an affordable monthly budget

Creating a budget should help you to understand how much money you’re spending and where you’re spending it. It will allow you to pinpoint problem areas in your spending habits and allow you to find creative ways to cut back in some places.

To create a budget you should:

• Calculate your overall income;
• Calculate how much you currently spend each month;
• Take your bills and priority payments away from your total income;
• Make note of how much disposable income you have each month for buying general things and adding to savings.

Prepare for unexpected expenses

It is always a good idea to try and save money for the times you may need it most. For example, if your car breaks down or your boiler breaks, having money set aside for repairs and emergencies will make your life much easier.

Don’t be hard on yourself if you were unable to save money last year, it's never too late to start! Even if you only manage to save £5 per week, you are likely to find this beneficial in a time of need.