Being in debt may not only affect your finances, but it can also create a lot of mental turmoil, especially if you are uncertain about how you can clear your balance and still stay afloat in the coming months. Finding ways to nullify debt as quickly as possible and prevent it from occurring again, can help you to find a bit more financial freedom. This may be especially useful to those who struggle with managing their finances, or are on a lower income than they may like.

One of the important aspects of learning to be free of debt can be to put measures in place to reduce the likelihood of you needing to borrow money again. While avoiding impulsive purchases can be helpful, you might also want to think about how you can provide for your family, especially if large costs arise that are necessary to your daily life.

Car repairs, especially to expensive cars like Audis or a problem with your home, can quickly lead to a large bill. Setting up an ISA with Wealthify can allow you to save small amounts of money each month, which can then grow thanks to the interest provided. The money you save may also be free from any tax, which can enable you to keep all of the profits. An ISA may come with a maximum yearly limit, so you might want to check how much is in the account before you attempt to deposit more. Getting into a habit of saving money may come in handy should expenses arise.

When paying off existing debt, you may want to consider the method you are using. Trying to pay off a larger debt first may actually work against you, as you will still be gaining interest, alongside your other debts. Many people find the snowball method to be a bit more successful. This involves making the required minimum payment on all debts that you currently have, and then putting as much money as possible onto smaller ones. That way, you can completely erase your lower debts a lot quicker, and then focus on the others.

You may also want to look into the ways you manage any credit card debt. When a promotional period ends, you could then see fees and interest added to your existing balance. Due to this, you may want to consider transferring your balance to a new card that has 0% interest. It can be helpful to consider doing this until your balance is at 0, and then simply cancel the card entirely so that you aren’t tempted to use it again. This way, you can then live within your means and reduce the temptation of borrowing money that you don’t have.

Getting into debt can be quite a vicious circle. You may borrow money one month, but then find yourself continuing to borrow when you don’t have enough money due to paying off your previous loans. Finding ways to neutralise them completely, and then live only on the money you physically have in your bank, can help to free you from this spiral.

In the UK, you can lease or purchase a vehicle depending on your preference. While many people prefer to buy a car, some prefer leasing and paying monthly rent or fees. Different vehicles are calculated differently, based on the year, make, model, and miles travelled. Most people also choose depending on how much money they’ve saved up.

Personal Contract Purchasing (PCP) finance and Personal Contract Hire (PCH) are excellent methods to become more mobile. Both options offer great chances to drive a brand new car without paying for the entire amount outright or with cash.

Cars come with several liabilities like taxes, insurance, and paying for parking. While it is mandatory to pay a fixed price for government taxes, insurances, and more, you do not need to stress about parking anymore. It is easy to book a convenient, safe, and secure spot at affordable hourly, weekly or monthly rates with YourParkingSpace.

Let us look at whether you should lease or buy your next car.

Before we start, there are a few similarities between PCP and leasing. These similarities are:

• Mandatory deposit required
• Fixed monthly payments offered
• Limits on mileage
• Excess mileage charges
• Payments usually include the warranty, breakdown, road tax, and delivery

Let us look at each in detail.

Personal Contract Purchase (PCP):

A PCP is like a car loan, but owners only borrow a small amount equal to the difference between the car’s current value and expected value at the end of the contractual agreement. There is a mandatory deposit, but these amounts are flexible and pre-decided by the car dealership and the car owner. Many times, there is no deposit. However, putting down a decently-sized amount can make the monthly car payments much lesser in the long term.

PCP terms are pretty flexible too. The usual payment terms are based on a duration of two, three, or four years total. However, most people can pay it off earlier depending on the agreement terms with the dealer. At the end of the period, you can also choose to make balloon payments to fully own the car. If you decide not to own the vehicle, you can finish the payments according to the terms and simply return the car. You are not under any obligations to own the vehicle once you’re done using it and making the payments.

Many times, PCP has the servicing and maintenance included in the deal. However, there would also be an additional allowable mileage allowance. You could be charged if you cross those limits.

Personal Contract Hire (PCH):

Personal Contract Hire (PCH) or leasing is nearly always done for new cars. Many times the ticket prices on these cars can be lower than PCP and cash deals. This decrease in the rates is because leasing companies purchase cars from manufacturers at heavily discounted rates. They then pass on the savings to leasing customers to make the offer more lucrative.

While most of the conditions between PCP and PCH are the same, the main difference is that you cannot make a balloon payment to own the car at the end of the term. You must return the vehicle once the terms are fulfilled. Most people who enjoy changing cars every few years and like to drive newer models opt for PCH options so they can keep experiencing the thrill of driving newer models and varieties of vehicles.

However, the leasing company runs a thorough credit check on the borrower, and the payment terms could change based on the credit ratings. You would require a good credit score to get approved for lower monthly payments.

Like PCP, PCH also requires an upfront deposit with a series of regular monthly instalments or payments and usually has a mileage limit. Crossing the limit could attract additional charges.

Is Leasing Or Buying Better?

From an investment perspective, you have nothing to show at the end of the lease. However, PCH allows you to use brand new cars at a much lower price. If you purchased such expensive cars, the down payment and loan instalments would probably be much higher. Leasing also makes sense for cheaper, smaller utility cars to run errands, chores and drive the kids to school.

PCP options are suitable for people looking to make an investment. At the end of the term, the car ownership can get transferred with a sizable payment. However, you must also include the depreciation costs and run a cost vs value analysis.

You could opt for either PCP or PCH, depending on the reason for needing a car.

If you are looking to advance your career, one of the first steps is to ensure your skills fit the positions you are applying for. Have an understanding of the areas that make you a more effective employee. Knowing more about these areas can help you develop them.

Gaining these skills

If you are trying to grow in your career, you might wonder where you can get the needed skills. One way of getting these skills is to go back to school. Not only will having another degree look good on your resume, but you can also learn these essential skills. If you are thinking about going back to school, you can take out a student loan from a private lender to help cover the cost. With Earnest private student loans, they can cover what your savings might not be able to.

Managing your time

The ability to multitask, manage your time, and meet deadlines allows you to not only improve your employability, but to be more productive while at work. Knowing how to do these things can also reduce job stress and allow you the time you need to work on both career development and other projects at work. There are several ways to improve these skills. You can use applications or software to help you stay on task, make a to-do list, and set reminders on your computer or phone. Try to manage your work schedule carefully and track how much of your time is spent on what. You should determine whether this schedule meets your needs and goals. If you are working while getting your degree, you will be forced to manage your time even better.

Customer skills

Being able to work well with customers allows you to benefit a company since it positively affects the company’s reputation. It also ensures the company receives more customers in the future. Even if you don’t directly deal with customers, these are useful skills to have. Even when working with coworkers having these interpersonal skills will help you immensely. You can boost your knowledge in this area by mimicking or shadowing a coworker who is known for their ability in this area. you might have a manager or supervisor to practice interactions with you. They can also explain how to handle certain situations that might come up in your job. There are also online courses that help you become stronger in this area, and you can even work with a coach.

Working on a team

Being able to collaborate with your team allows you to reach your objectives and solve problems more quickly. Often, working with a group allows you to get much more done than if each person was working on their own. Plus, it allows you to better split up the workflow and make the process smoother. Interpersonal abilities will help you interact and communicate with both coworkers and customers. It helps you be a better team member and you can improve them by observing how others interact and then mimicking them. You can also work with a coach to help you gain even better knowledge in this area.