Increasing income Debt Solution
Summary: Increasing income - This article explores income-generation ideas so that a debtor can maintain contractual repayments on debts.
When assessing personal finances, it makes sense to calculate exactly how much income actually comes into the household. We may earmark certain types of income eg child benefit is for school lunches , or my partner pays for the car insurance, but understanding all sources of income is necessary for effective budgeting. Weekly or 4-weekly income may be best to convert to monthly amounts. For the self-employed or company directors calculations are more difficult and it is important to deduct all business expenses and tax provision before estimating the average "bring home pay".
- Workplace - it may be possible to work more hours or seek promotion. Not many of us have the confidence to ask our boss for a rise, but, well ... you never know!
- Second job - although this may be impossible for many, and for some finding a first job is difficult enough, a few hours a week extra could make all the difference.
- Lodger - again, for many this is simply not an option. But if it is possible that we could put the spare room to good use and make a significant difference to our financial incomings. If not a room, maybe a garage (though not necessarily for a lodger!).
- Maximising benefits - figures on unclaimed benefits approach £20bn pa nationwide. A little bit of research, a discussion at the benefits office or CAB may be well worthwhile. Changes of circumstances should be communicated straightaway as they may affect our benefits entitlement.
- Compensation and refunds - we may have grown tired of the adverts or phone calls promising the world, but if you have been mis-sold a loan or credit card or overcharged by your bank, it may be that you qualify for a refund.
- Selling items - can be worthwhile or a car boot sale may generate enough from unwanted goods to pay off a small credit card debt.
- Making the most of our money - putting income into the right account may generate some funds rather than costing us to run an account (especially if it's overdrawn).
By putting "Increasing income" into a search engine may result in some unexpected results. We had never considered cash back sites or acting as a mystery shopper or reviewing products. Beware of the scams. Too good to be true are usually, well ... too good to be true. But that shouldn't deter us from exploring, discovering, and experimenting - so that we can increase can provide us with the debt-free life we are striving for.
The above is provided as information only. Iva.co.uk does not provide debt advice. You must always seek professional advice before taking any action to resolve your debts.