When you have a family, it seems as if you are paying for things constantly: school trips, uniforms, shoes and sports are just some of the regular items on the average household expense list. The 2017 report on family spending by the Office of National Statistics showed that in 2017 families had a greater disposable income, but at the same time, we were also spending more and saving less than we have been over the last 10 years. How can you keep on top of your family’s finances and still afford those big ticket items such as a much-needed holiday, a new car or a new sofa?
Getting Money Quickly
What happens if you need to borrow money for a family purchase? First, think twice about paying it back; in the UK, the average debt is £8000 per person and that doesn’t include mortgages. Big ticket items can usually be bought using a credit card. Be savvy and shop around for a card with a 0% or low interest rate so that your borrowing won’t cost you anything at this stage. Additionally, check out credit cards with cashback rewards to ensure you are making the most of your large purchase.
Don’t Overpay Interest
So now you have spent the money and are enjoying your new car, kitchen or sofa reality hits home and is time to fund the repayments. First, keep track of how long the interest fee period on your credit card lasts. If you aren’t in a position to do that then do your research into credit cards with good rates or deals for transferring your balance. With low interest rates, it may make sense to pay off credit card debts instead of saving money.
Finding Extra Cash
We would all love to have a magic money tree to fund our family but sadly this isn’t possible. To find extra cash, take a look at every aspect of your spending to see where you can make savings, do you really need that daily latte, your weekly takeaway or branded food where supermarket own brand will do? Or is time to declutter? To get a financial boost, make money from your unwanted clutter by selling it on ebay or local facebook groups, it is amazing how one person’s junk is another person’s treasure. And now we have gone digital, think about trading in old CDs or books online for cash.
Families are a constant drain on finances and using a credit card is one way to fund unusually large purchases. But be savvy about it and ensure you find the best deal and are able to fund the repayments.