14:19 27 October 2017
Once you suffer a financial strait, it can feel as though you have reached an impasse which it is impossible to cross. Paying one bill can lead to another immediately popping up, with no end or relief in sight. It is important however, to not ignore your financial woes, and to tackle them head on before the situation worsens. Just remember, it is possible to get back on your feet, and there is always help and advice available.
The first thing you need to do is work out what, out of all the things you must spend money on, is the most important. For most people, housing, food and bills come first. Things like buying new clothing can usually be put on hold, with charity shops an option if it’s urgent and some charities are able to help with the cost of school uniforms. If the crisis is short term – for instance, if you’ve had to make a single big payment but you won’t have to do so again for the foreseeable future – then you can talk to fuel companies about paying by instalments. Most are happy to help. Your landlord may be willing to come to a similar arrangement about the rent, or you may be able to arrange to take a mortgage holiday.
The next step, after working out what you absolutely must spend on, is to draw up a budget you can stick to. That means, if possible, leaving yourself a bit of wriggle room – try not to make your budget so restrictive that you’re unable to stick to it. Your budget should be designed to enable you to get by until the crisis passes.
If you simply don’t have enough money to meet your basic costs in the short-term, the most practical option may be to take out a loan. Talk to your bank and see if they can help or check out PersonalLoans.com personal loans reviews and see if they are a good fit. Make sure that you understand the interest rate on any loan you’re offered, and can work out what it will cost overall. If your bank can’t help, consider a payday loan from a provider like www.luckyloans.co.uk – although you may have heard bad things about loans like this, they don’t need to be problematic as long as you can be sure of paying them off on time.
When you’re struggling to meet your costs, it’s worth looking through your possessions to see if there’s anything you feel comfortable about selling to give you a bit of extra cash. If you’re in work, ask your boss if you can get extra hours, or even if it might be possible for you to have a raise. You could also consider finding a second job or making money from skills like sewing or carpentry.
When you’ve just managed to recover from a financial crisis, the last thing you’ll want to think about is what you’ll do when it happens again, but being prepared could make your situation much easier if that does happen. Try to draw up a post-crisis budget that lets you put a bit of money into savings every week. Set aside a rainy-day fund and make sure you don’t take anything from it until a crisis arises and you need the funds.
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