At some point in our lives, we will inevitably find ourselves in a financial situation that prevents us from saving, purchasing products that we desire and even meeting our debt repayments. You may have a credit card that you were making regular payments towards, but recently you’ve been struggling to find the minimum amount. You might have simply found yourself swamped by debt which has now become unmanageable. You are not alone. Finding yourself in dire financial straits means that your personal well being, relationships and health can suffer. Take a look at the practical things you can do to prevent debt stress from taking over your life.
Don’t Fall Into More Debt
It sounds simple and obvious, but you need to refrain from taking out more loans or credit cards. While you may feel the need to obtain another credit card simply to make ends meet, don’t. You’ll need to tighten your belt in other areas. While it may mean eating student style food and foregoing any sort of social calendar for a few months, it will be worth it in the end when your purse strings begin to loosen.
Credit has been easier to obtain over the past decade with lenders almost encouraging consumers to stretch themselves financially. If you have a credit card, consider swapping to another with 0% on balance transfers. By doing this, you can essentially shift your debt and make the same repayments while ensuring that this goes towards the debt you’ve accrued, not any interest. Even if you are only making the minimum repayment, this will be going 100% towards clearing your debt.
The number you generate when financial institutions check your credit score will dictate what financial products may be available to you now or in the future. You don’t want the only personal loan available to you to be a lucrative payday loan or a ridiculously high short-term loan from an unregulated provider. Check your credit score for free and set about improving it. If you can, begin to make payments above the minimum towards your debt. Ensure that you’re registered on the electoral roll and don’t utilise any of your overdraft. By doing this, you are holding off the looming threat of needing to employ the services of a bankruptcy lawyer and you’ll be doing all you can to prevent your debts from suffocating you.
Ask For Help
While you need to shoulder the financial burden of your debts, you can still ask for help to manage the stress that comes along with this responsibility. You should be congratulated for not burying your head in the sand and wanting to become debt-free. It is possible to call up for some free, independent debt advice if your money worries are becoming too much. If your health is suffering, you should head to your local surgery to discuss your anxieties with a doctor. Sometimes, you just need a friendly ear to offload your worries onto – a good friend or family member is ideal.
While you are at the beginning of your journey to become debt-free and the stress is all-encompassing, remember that in two years, three years or five years time, you will be back in the black and ready to look forward to a more prosperous financial future.