Are you a Debt Diva?
25 Jun 2009 Tell a Friend
If you're one of the many women in the UK who loves to shop, you may be
in for a surprise when it comes to your credit rating. A recent survey
by Cosmopolitan found
that 64 per cent of its readers were in debt, with more than half of
these owing upwards of £5,000 on credit or store cards. This new
generation of debt divas thinks nothing of splurging on designer labels
even when they're spending more than they earn. As a result, the Consumer Credit Counselling Service says that the proportion of young women asking for help with debt has doubled in the past ten years. These tips could help you avoid serious financial trouble.
Face up to the facts
Debt is a big issue - collectively, British adults owe more than a trillion pounds. But it doesn't have to get out of control. The first step is to clarify how much you owe. Go through your bank statements and bills and factor in anything you owe to friends and family. Check your credit report, which contains details of your credit accounts, such as loans, cards and mortgages. It can also remind you of borrowing you'd forgotten about. You can see your Experian credit report for free with a 30-day trial of CreditExpert.
Go on a debt diet
Take at close look at where your money's been going over the past year. You have to find ways of cutting back, so approach this as you would a conventional diet. Instead of counting calories, write down everything you spend, from bus fares and coffees to home insurance and your TV licence. Work out a new weekly budget but remember you also need to treat yourself occasionally or you'll eventually fall off the wagon. Set aside a little extra cash to compensate for this.
Change your spending habits
Go through your wardrobe - you will probably be shocked to see how many clothes you own compared to how many you actually wear. When you're desperate for a new clothes fix, try charity shops instead of hitting the high street. Consider swapping clothes for others at an event set up by the Swishing organisation, or indulge in some 'negative spending' by selling some of your unwanted clothes on eBay and then spending the proceeds.
Use the stats to your advantage
On average, women under 40 pay about 17% less on car insurance than men.