September 21, 2018 Comments Closed

Tips on How to Deal With Your Financial Difficulties

Posted by:admin onSeptember 21, 2018

There’s no doubt that financial difficulties can inflict a lot of anxiety in our lives. Frequently thinking about how you’re going to pay your bills not only makes you apprehensive, but also puts stress on your relationships, your family, and your health. The fact is, worrying about money isn’t going to fix your financial concerns. If you’ve found yourself in a situation where you’re straining to make ends meet, here are the best ways to resolve your financial troubles so you can live a stress-free life again.

 

Document your monthly expenses

The first step in taking care of your financial issues is identify exactly where your pain points are. Whether or not you’re dealing with a large credit card balance, you’re trying to increase your retirement savings, or you simply spend too much on dining in restaurants throughout the week, pinpointing the main causes of your financial issues will show you which expenditures must be prioritised so you can get your finances back on course. Get a pen and paper and document your current monthly costs including food, bills, debt repayments, transport, tuition, and any other items you normally spend each month.

 

Decrease your expenditures

When you’ve got your monthly expenses in front of you, take a closer look and find which expenses can be reduced and which can be removed altogether. Even though your mortgage repayments clearly can’t be lowered, you can possibly decrease your food bill by only eating at home and even remove other entertainment expenses like cable television. It’s imperative that you are pragmatic about reducing your expenses. Always remember, if you’re trying to overcome financial troubles then you must make sacrifices to resolve them.

 

Construct a budget

Now that you’ve got your monthly expenditures jotted down without the unnecessary spending, you must develop a budget. If you’re unfamiliar with developing a budget, there are lots of terrific apps you can download on your smartphone. Personally, I’ve found the Budget Planning app from ASIC to be very practical: https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/budget-planner.

 

This will enable you to determine how much money you have left each month by viewing your income and expenses. It’s vital that you stick your budget. If you feel that it could be difficult to do this, add a miscellaneous item to your budget to give you some room to breathe, or even a motivation item to reward yourself at the end of the month for following your budget.

 

Prioritise your debts

Some debts cause more pain than others, so to relieve your financial strain as best as possible, aim to reduce your biggest debts first. Not only will you be saving money by paying less interest, you’ll also feel far better about yourself. Only paying the minimum repayments on your credit card bill can sometimes take years to pay off, so try to reduce these types of debts as soon as possible. Bear in mind, you still have other fixed debts every month like phone bills and electricity, so these have to be taken into account as well.

 

Still feeling the heat?

If you’ve lowered your expenditures and developed a budget but still find that there’s not enough money to repay all your debts, you’ll have to find other income streams. Are you able to work a second job? Can you sell any costly household items that you can do without? Reaching out to family and friends is another reliable way to try to resolve your issues. Whatever you do to get additional money, never get a personal loan from the bank to settle your existing debt – this will only exacerbate an already stressful situation.

 

Seek financial advice

If the above steps haven’t relieved your financial stress, it’s better to seek financial advice sooner instead of later. Depending on your individual situation, there are lots of choices available including debt consolidation loans or debt agreements which can help those in need. Don’t fight your debts for years before getting assistance, reach out to Bankruptcy Experts Mount Isa on 1300 795 575 or visit our website for more information: www.bankruptcyexpertsmountisa.com.au

 

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