Small expenses… big problems?
It is easy to underestimate the impact of small financial commitments. In fact, cutting back on the little things can make a big difference.
Small costs and subscriptions may seem insignificant in the moment, but they add up over time and can become a financial burden. Failing to manage these costs can lead to significant debt. If you’ve fallen into this trap, it’s time to take back control.
Subscribing to debt
Many of us have subscriptions to streaming services such as Netflix, Amazon Prime, or Disney+, as well as other memberships, such as meal delivery or monthly beauty boxes. These may only cost a few pounds a month, but over time they can add up to hundreds or even thousands. If they renew automatically, you may forget about them and continue to pay even when you are no longer using the service.
Cut the credit card interest
Credit cards are a convenient way to make purchases, but they can also be a trap if not used responsibly. When you only make the minimum payment, you are essentially paying interest on the balance. This interest can add up quickly and, before you know it, you’re in debt. Credit card companies can also increase the interest rates on balances, making it even harder to pay off.
Giving in to impulse
Impulse purchases can also add up over time. You may not think twice about buying a small item, but when you make several of these purchases, the costs mount. This is especially true when using credit cards, as you may not realise how much you’re spending until you get the bill.
Take back control
It is important to be aware of these costs and to manage them properly to avoid getting into debt. This means cancelling subscriptions that are no longer needed, paying off credit card balances in full, and being mindful of impulse purchases. By being proactive and managing small costs, you can avoid getting into debt and stay in control of your finances.
If you find yourself getting out of financial control, don’t panic. Ask for advice early. Talk to your lenders or a free and independent debt advice service so they can help you get back on track. You’ve got this.
