Many of us will experience financial issues at some point in our lives. Whether it’s due to a low paid job (or lack of work completely), redundancy, illness or unexpected expenses- it’s always a stressful thing to deal with. But you’re certainly not alone, two in three people worry about money on a regular basis. If you’re currently experiencing some hardship with money or your finances are in a bit of a bad way, here are a couple of ideas that might be helpful.
Work Out Your Income Vs Expenditures
Working out exactly what you have coming in each month compared to what you have going out should always be your first step. This allows you to evaluate the actual situation rather than just what you perceive it to be. Once you know where your money goes each month, it makes it easier to work out where you can make any cutbacks. Without a clear budget in place, it’s so easy to overspend which isn’t what you want where you’re already struggling with money.
Taking out another mortgage on the property you already own allows you to borrow money against your home. Sometimes remortgaging can save you money since the best mortgage rates only last for a short time. This is often two to five years- after this, you may have to start paying more. Remortgaging allows you to secure another fixed deal at a price you can comfortably afford. If you’re struggling financially, remortgaging also allows you to borrow money which you can use to pay off things like debts. While this should be done with caution, since effectively you’re turning unsecured debt into secured debt, if you plan and do it correctly it could help you out of a bad situation. If your financial situation is set to improve, for example, you’re returning to work after an illness, this could allow you to pay what you need in the here and now to avoid getting into more trouble with money. Speak to a company which offers remortgaging advice for more information.
Speak to a Debt Management Company
People often struggle with their finances, spiralling into more debt and losing sleep- and still refuse to get advice on the situation. For many people, if can be the fear of finally admitting that there’s a problem. If you’ve been burying your head in the sand about your money issues and hoping that things will magically resolve themselves, this is an important step to take. Speaking to a debt management company can take a massive weight off your shoulders. They deal with your creditors, so you receive no more phone calls, letters or general harassment. They work to get your interest frozen so that every payment you make is bringing down the debt rather than simply going on the interest. And they work out an affordable monthly payment that works for both you and your creditors. Doing this will often have an impact on your credit score since some companies will automatically default you when you tell them you can no longer keep to the original payments you agreed. But if you’re having financial issues, chances are your credit score has already been affected by late or missed payments.