When you try to get onto the property ladder, it takes a lot of time and a lot of sacrifices. You have to plan everything out to ensure you don’t forget anything and meet every requirement you need. For example, it’s all well and good budgeting for a new house but if you don’t also budget for bills or specific things like the cost to move a piano if you have one or garden equipment then you will find yourself with a house but no money to make it a home. This is why it’s important to get rid of any debt you have and find a way to budget and save as much money as possible.
There are some pretty scary facts out there about how much debt people have on credit cards. It can be a couple of thousand per person, which can take several years to clear if you carry on your spend as you currently are. And if you are ever planning on getting a mortgage anytime soon, then you need to make sure that you are able to pay back what you owe and still have enough money to be able to afford things like Ace Roof Repair when things go wrong with your property. And that starts with making sure that you’re better able to take care of your finances. The good news is that there are several ways that you can make some significant savings with your money, some changes to make with your spending, and on your way to clear debt.
An action plan is a must, especially when you’re going to be applying for a mortgage. Clearing debt can help you with credit repair, which is all an important part of being able to pay back a mortgage. Getting approved for a mortgage is all about showing that you’re able to pay the money back each month. So here are some of the ways that you can save money and make sure that you’re able to get a mortgage sooner than you think.
Clear Credit Card Debt
Credit cards are needed when it comes to getting on the property ladder. If you’re sensible with your spending and repayments, this will leave you with a high credit score – the higher the score, the more affordable your mortgage will be. With this being said, there are times where people’s credit score is not as high as they may have liked. But it is never too late to make this happen, especially if there are plans to make big purchases. It may be worth it to read the article here about rebuilding credit score, as this could come in handy.
If you don’t have a credit card then Google “credit card no credit history” to see all the options available for you. By building up your score, you can improve your chances of getting a good mortgage.
However, having a credit card can sometimes mean getting into debt which doesn’t reflect well on your credit history. Credit cards can be one of the highest interest rates of interest that you will pay on any debt that you have. And the general rule with debt is to clear the biggest one that you have first. Which for most people, is going to be credit card debt. In fact, you could even look into low interest loans to pay off the higher credit card debt so that you’re not paying so much interest, and then paying it all of will be quicker.
Check Fuel Bills
At this time of year, there can be a lot of extra expense. From holidays and gifts to just keeping warm, it can all add up. Which is why shopping around for your fuel bills can make a big difference to your budget. For things like banking and energy, loyalty and sticking with the same thing only benefits the energy provider or the bank. If you’re not tied into something, look for a cheaper alternative.
Cut Unnecessary Spend
If you are looking to save, then it is a good idea to look at the spending that is just not needed. Take something like a home phone line, for example. Is this something that you even use anymore? Are you paying for things and not using them, like a phone line or gym membership? There can be plenty of other things that you overspend on, such as cups of coffee on the way to work when you could just bring your own from home. It does make a difference, so look at what you spend, and then make a plan of how you are going to cut it all down.
What is one of your best tried and tested tips for cutting spend and saving money? It would be great to hear what you think.