What To Do If You’re In Financial Difficulty
There’s nothing more disheartening than worrying about money.
The stress of managing your finances can be caused by many things;
- Illness or redundancy could impede your ability to earn
- A change in circumstances
- Not earning enough
- A sudden emergency
In these situations it is easy to panic, but thankfully there are tips, tricks and services, which can help give you a little bit more breathing room if you feel you’re starting to struggle financially.
Change your spending habits
Take a look at your current spending habits and identify areas where you could save money.
This could be a simple change like:
- Eating out less often
- Changing where you do your shopping
- Trying to avoid frequent impulse buys
Looking at services and contracts you’re tied into and potentially downgrading or cancelling them can help save a little each month, consider downgrading your phone contract or cancelling those services you pay for each month but don’t necessarily use.
Making a few changes to your typical spending habits can help free up a bit of extra cash each month, money which can be saved to give you an additional financial buffer and help prevent future issues.
Improve your budgeting skills
Similar to looking at your spending habits, budgeting effectively can also help to leave you with a bit of extra cash saved each month.
Clever budgeting can help you stretch your finances further and identify areas where you can continue to save money. Financial charity StepChange have a whole section on their website devoted to budgeting which can help you put together a practical budget to suit your situation.
The key thing with any budget is to stick to it; this can be a struggle, especially if this means changing your routine, but the rewards in the long run are worth it.
Sometimes knowing you have some extra money put aside ‘just in case’ can ease the stress of financial worry and also give you a pot of funds to fall back on if you do find yourself in trouble.
Ask for help
If you’re in dire financial straits, don’t let embarrassment stop you getting the help you need. Burying your head in the sand and hoping the problem goes away seldom works.
As daunting as it sounds, asking for help really can help get you out of financial trouble. If you are in debt, it can be worth asking your creditors (the companies that have lent you money) if you can come to a different arrangement, which will allow you to continue to pay them back but without causing yourself further financial distress.
A debt management company will be able to help you but they may charge you an administration fee, depending on the help you receive. StepChange and PayPlan don’t charge additional fees.
You might need to ask family or friends for help. In some cases a financial situation could mean you can’t afford where you currently live. Potentially moving back in with parents or living with friends can help reduce the cost of living and allow you to save money to rebuild your finances.
This is one of the trickier solutions to financial troubles. If you need a short term solution a secured loan like a Logbook Loan could help tide you over and solve the problem.
We would advise caution whenever you are considering a loan as a means to get out of financial difficulty. Seek advice first and be careful of unsecured loans that could run the risk of making your financial situation worse.
If you need to talk to someone about your financial situation charities like StepChange and the Debt Advice Foundation can provide impartial advice can steer you in the right direction for solving your financial problems and coping with the stress of debt.
If you have a Logbook Loan with us, and you’re worried about paying it back, please get in touch with us as soon as possible so we can help.