Financial worries can be dangerous to ones health and may lead to lots of complications.
It is hence advisable to avoid financial worries as much as possible.
The global economic downturn has brought financial instability and caused unexpected situation where quite lots of families are struggling financially.
A survey has suggested that the ongoing financial worries in the UK are putting an increasing strain on family relationships.
The survey revealed that financial problems mostly affected women as they worried more about covering everyday costs – with 55% expressing this fear compared to 49% of men.
For individuals who are already in financial worries, here are 8 simple and best practices to help you get out of financial worries.
1.) Know what you owe exactly
There are many people who do not know exactly how much they owe and how much they are required to repay back. This makes it hard for them to repay their debts effectively. It is important to check each of your debt and know exactly what you owe each debtor.
If there are some inconsistencies, you should contact your local consumer protection office. You can make use of income support for financial problems which may reduce your financial worriers. You can get more information from contact income support.
2.) Explain you situation to your creditor
Many creditors will assume you simply avoid to repay your debt when you fail to make the repayment. It is advisable to contact your creditors and explain to them your financial condition. You and the creditor can then come up with a new repayment schedule.
3.) Come up with a budget
It is important to come up with a budget that will guide your savings as well as expenditures. By budgeting, you will be able to eliminate unnecessary expenditures and hence cut debts. The budget should give priority to basic needs and give less priority to optional expenses such as vocational trips.
4.) Reduce your expenses
High expenses mean you will be in debts more in order to support your expenditures. Therefore, it is advisable that you cut the expenditures to levels that you can support it with your income. Reducing expenses also create extra money that you can direct towards settling your debts. Avoid impulse buying and go for products that are on offer. You should also stop using your credit card, use debit card instead.
5.) Use your savings and assets to settle your debts
If you have savings on low-interest account, it is advisable you use the saving to pay your high interest debt. In this way you will be able to save on interest rate and hence cushion yourself from adverse effects of high interest debts. If you have more than one car, sell one that requires high maintenance so that you reduce your expenditure and use them money to settle your debt.
6.) Join aid program
There are quite lots of aids programmes from government and private sector to families with dependent children, Medicaid and food stamps. By joining these programs, you will be able to reduce your expenditure. You will also be able to reduce the amount of stress that comes with financial worries. Some religion organisations and community groups also offer sort of these resources.
7.) Consolidate your debt
If you have lots of debts with high interest rate, you should consider debt consolidation. In this process, you will be able to replace those debts with one debt which is of lower interest rate. This will help you save money in terms of interest.
8.) Prepare a financial plan
To get out of financial worries, you need to have a good financial plan. Do research to know which is the best plan for you. Remember a plan that worked for another individual might not necessarily work for you.
This is a guest post by Leo Josh
Leo is interested in writing articles and have been a blogger for the past two years. Apart from writing articles, he also likes to learn new things. Presently, Leo is researching on contact income support, a kind of income benefit.
Leo is interested in writing articles and have been a blogger for the past two years. Apart from writing articles, he also likes to learn new things. Presently, Leo is researching on contact income support, a kind of income benefit.
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