September 11, 2018 0

Tips on How to Address Your Financial Difficulties

Posted by:Charles Bosse onSeptember 11, 2018

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

 

List your monthly expenses

The first step in taking care of your financial problems is ascertain exactly where your pain points are. Regardless if you’re dealing with a large credit card debt, you’re attempting to enhance your retirement savings, or you merely spend too much on eating in restaurants during the week, identifying the main causes of your financial concerns will reveal to you which expenses have to be prioritised so you can get your finances back on course. Grab a pen and paper and jot down your current monthly expenditures including food, bills, debt repayments, transport, tuition, and any other items you generally spend every month.

 

Cut down on your expenses

Once you’ve got your monthly expenses in front of you, take a closer look and examine which expenses can be reduced and which can be cut out altogether. Although your mortgage repayments naturally can’t be decreased, you can probably lower your food bill by only eating at home and even do away with other entertainment expenses like cable television. It’s critical that you are pragmatic about decreasing your expenses. Keep in mind, if you’re trying to address financial troubles then you must make sacrifices to resolve them.

 

Set up a budget

Now that you’ve got your monthly expenses written down without the unnecessary spending, you have to set up a budget. If you’re not familiar with making a budget, there are loads of terrific apps you can download on your smartphone. Personally, I’ve found the Budget Planning app from ASIC to be very useful: https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/budget-planner.

 

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

 

Prioritise your debts

Some debts cause more strain than others, so to ease your financial strain as best as possible, aim to reduce your largest debts first. Not only will you be saving money by paying less interest, you’ll also feel much better about yourself. Only paying the minimum repayments on your credit card bill can sometimes take years to pay off, so attempt to reduce these types of debts as quickly as possible. Bear in mind, you still have other fixed debts each month like phone bills and electricity, so these need to be accounted for as well.

 

Still feeling the heat?

If you’ve cut down your expenditures and created a budget but still find that there’s not enough money to settle all your debts, you’ll have to find other income sources. Are you able to work a second job? Can you sell any high priced household items that you can do without? Reaching out to family or friends is another useful way to try to address your difficulties. Whatever you do to get additional money, never get a personal loan from the bank to repay your existing debt – this will only worsen an already stressful situation.

 

Seek financial guidance

If the above steps haven’t relieved your financial stress, it’s better to seek financial assistance sooner rather than later. Depending on your individual situation, there are numerous choices available like debt consolidation loans or debt agreements which can help those in need. Don’t wrestle with your debts for years before getting guidance, speak with Fresh Start Solutions Hobart on 1300 818 575 or visit our website for more information: http://freshstartsolutions.com.au/bankruptcy-hobart

 

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