We could list all of the potential money worries you may be experiencing here, but that’s not going to help the situation.
It’s understandable you feel stressed and overwhelmed from a low cash flow and being caught in a neverending debt cycle. Still, it’s important not to dwell too much on how the debt occurred and the extent of your money worries. And instead, shift your remaining inner strength and drive towards taking care of them.
Once you have some free time, grab a coffee, and work through the below steps.
1 – Face Your Fear
This part is incredibly uncomfortable but necessary. Rather than delay dealing with your debts, get stuck in and expect it to feel awful at first. Gather everything related to your money issues in one place.
2 – Make Your Finances Clear
Write down, or type in an excel spreadsheet the amount you owe and the interest you’re paying on the debt. It would help if you had a clear picture of your income (including state benefits and money from assets) and your outgoings too.
3 – Assess The Situation
With your income, outgoings, and debt payments laid out, assess the numbers and decipher whether you can afford to pay your debts back without getting further into debt.
If you can, great! See if you can increase your payments to pay them off sooner, and work how long it’ll take before you clear your debt. If you can’t, it’s time for some swift action.
4 – Rally Up And Work Through Your Options
This part requires you to treat your debt and eliminate it as if it’s a job. You’ll need your phone, paper, pen, and laptop, and preferably somewhere quiet to work. With your “money worries workspace” set up, work through the below points;
- Handle your highest priority debt first – call the company to explain your situation, such as a job loss, divorce, illness, and subsequent income loss. Because they may be able to accommodate a cheaper repayment plan.
- If you have debt from different companies, make it manageable, and look for a reputable debt management company. For instance, Debt to Success System ain’t a scam and could be the right organization to help you write off, or consolidate and reduce your monthly payments into a manageable monthly sum.
- Relentlessly cut down your outgoings. Work through every bill, cancel unnecessary subscriptions, let go of the weekly cleaner, and reduce your TV and internet package. Also, if your mobile contract is up for renewal, why not cancel the contract? And buy a cheap rolling-contract sim instead. And always remember to preplan food shops by writing a list, with a budget, and stick to buying food you can afford. Even if this means shopping somewhere cheaper.
5 – Always Keep Up Your Routine
Amongst handling your money worries, try not to let your routine slip. Basics such as eating, sleeping, keeping active, and taking a break are crucial. To ensure you have the energy to continue not only facing, but also managing your money worries effectively.
Working through the five steps above shall enable you to break down your money problems and source relevant solutions to relieve your worries.