Daily Spends – A Diary of Spending Habits

What I spend, when and where?

Posts Tagged ‘Saving money

The Pros and Cons of Debt Consolidation

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How Does Debt Consolidation Work?

Debt consolidation usually involves taking out a low interest loan at a fixed rate to reduce monthly payments. This often entails rolling many loan amounts into one. An asset is used as collateral for the new consolidated loan. The most commonly used asset is a home. This means that if the consumer defaults on the loan, they agree to allow the house to be sold to collect the remainder of the funds. This method of debt management is usually secured to pay off student loans or credit card debt that carries large interest rates that may increase frequently. There are pros and cons to debt consolidation.

The Positive Side of Debt Consolidation

On the positive side, it allows consumers to pay down the principle amount faster. As a result, credit scores may increase. This is especially useful when the consumer is trying to secure a mortgage to buy a home. The consolidation takes many small payments, with variable high interest rates and rolls them into one monthly payment with a lower interest rate. This takes away the stress caused by trying to manage many payment due dates to avoid late fees. The smaller payment makes it easier for most people to create a budget they can stick to.

Debt consolidation loans often extend the original terms of a loan. If the balance would have been due in six months, the deadline can be moved back to 12 or 18 months without penalty. If a home equity loan is involved, the interest may be tax deductible.

The Negative Side of Debt Consolidation

One of the disadvantages to this type of program is that it does not teach the consumer new habits, it just enables them to continue the bad spending habits that have already been established. If they don’t stop using their existing cards, debt will continue to build and their credit may be negatively affected.

Debt consolidation does not work for everyone. Many people believe that a consolidated loan is easy to get. While that may have been true at one time, it is not today. If your credit is still in good standing, it may be the most appropriate option. Though the monthly payments and interest rate has been reduced, the amount due has not. This means that the loan has been stretched out which will possibly take years to repay. It is only shifting the debt from immediate to long-term. Many people find debt settlement more appropriate for their situation.

Written by dailyspends

January 26, 2012 at 10:19 am

5 Sites that can help curb spending

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A quick guide to 5 sites that can help you to curb/monitor/think about your spending habits:

I’ve been keeping this blog for a while now and whilst (admittedly) I don’t list every single spend I make, it certainly helps me to keep track of my spending habits and identify where I can start to make savings in my spending patters (notably: midweek treats, travel & those little ad-hoc expenses that all add up!).

Looking back at my online stats I can see that the site is now getting lots of visits from people looking for ‘daily spending’ type queries. This signifies that people are out there actively searching for ways to reduce their spending or for online support and advice around the subject.

With that in mind, I thought I’d compile a quick run-down of 5 sites that can help people in their quest:

1 – Personal Finance Forums
There are a number of extremely active personal finance forums where users commune to discuss all variety of issues including daily spending & debt reduction. debt consolidation care forum is a great example of a community supporting each other in their attempt to reduce debts – with a forum & open blogging platform, this community of over 80,000 memebers provides a vital resource for everyday people to discuss money worries.

2 – Money Saving Sites
There are so many obvious ways to save money . . . it’s just sometimes it’s not as obvious as it should be. MoneySavingExpert.com is a great site for spotting the latest deals and money saving ideas.

3 – Government Help
The Financial Services Authority offer practical financial advice on their sites MoneyMadeClear.fsa.gov.uk.

4 – Frugal Bloggers
A multitude of ‘Frugal’ bloggers base their whole blog around the art of saving money in any give opportunity – catch them all at festivaloffrugality.com.

5 – DailySpendingNetwork
Our very own DailySpendingNetwork aggregates all the latest posts from our networked bloggers. You’re always invited to come and join us!

Hopefully you’ll find those resources useful in your quest to reduce your daily spending!!!

Written by dailyspends

May 7, 2008 at 11:33 am

Take Away Food – Plays havoc with your budgeting!

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My Wife’s pregnant at the moment which is fantastic! What’s even better is that she’s craving all kinds of take away foods.

Last night it was  kebab & pizza. A Milano’s special kebab (donner, chicken & lamb) and a 9 inch Hawaiian pizza. I really enjoyed it – it was lovely.  Hang on in there . . . there’s a point to the story.

I managed to save £10.00 yesterday by going without something I could have done with, but didn’t need. The intention was to squirrel it away in my draw at work so by the time next Christmas comes around I’ll have a nice little purse to buy some special presents for my family.

Guess what happened? Yup, you guessed it! That £10.00 didn’t get squirrelled away, it got spend on that Take Away instead. My present fund is now down to £0. Time to start again!

Written by dailyspends

March 6, 2008 at 2:53 pm

Daily Spends – Mothers Day Special

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Its Mothers Day on Sunday. I have three Mothers to sort for this year:

1 – My Mum
2 – My Mother in Law
3 – My Wife (from my 2 kids, dog, and unborn)

In short, it could be an expensive one! However, I’m lucky enough to have thought ahead and got a few things in over the January sales so each lucky Mother has got a nice cheap (but orginally expensive) Mothers Day gift bag including:

– Bath smellys
– A cool little cake shaped trinket
– A beautiful handmade card
– Some perfume
– Some nice little silk flowers

Total Original Price – £42.39 per bag (x 3 = £127.17)

Total Price ACTUALLY Paid – £14.50 per bag (x 3 = £43.50)

Cash saved by thinking ahead = £83.67

Written by dailyspends

February 28, 2008 at 12:19 pm