Money trouble is a crippling and exhausting weight to bear. Where it’s personal or business finances, it’s a dark cloud that hangs over you at all times. It can ruin your relationships, and even cause health problems. Extreme stress over money will lead to high blood pressure, anxiety, and depression.
The fact that you’re reading this article is a good start. You’ve made a positive step towards getting your life back on track. Once the money troubles are lifted, it’s an enormous relief. And that’s what we’re going to help you with today. There are plenty of options out there, and we’ll help you find the right path.
Face up to it
The single hardest aspect of money trouble is facing up to the facts. When you’re struggling with money, you tend to ignore the bank statements. We don’t check our accounts, and we let the bills pile up on the side. Your first task is opening all your statements, and totalling up the debt. Face up to the problem, and give yourself a total figure to work with. It might seem overwhelming, but facing up to the problem is your first step.
The only way to get your head above water is to clear those debts. It’s easier said than done, but it all starts with a simple plan. Now that you know exactly how much you owe, you can prioritise the debt payments. Start with the highest interest debts (usually the credit cards and any short-term loans). You should also realise that your current spending habits need to change. Clearing your debt must become a priority over all other aspects of your finances.
Renegotiate with lenders
Most borrowers are scared to call their creditors to talk about renegotiation. But, it’s time to take the plunge, and pick up the phone. In almost all cases, your lenders will be more than happy to renegotiate a payment plan that works for you. They want their money back, remember, so they’re often quite accommodating. Turn those payments into a more manageable sum.
It’s often thought of as a dirty word, but bankruptcy could be the best way to wipe the slate clean. Filing for bankruptcy means your debts can no longer be paid by you, the individual. In some cases however, your outstanding assets will be used to pay off creditors. The experts at Utah Bankruptcy Inc. tell us that it’s often the only way to free yourself of crippling debts. It does give you a clean slate, but you will be limited to what you can borrow in the future.
Rethink your strategy
Once you’ve put yourself on the path towards financial freedom, rethink your entire strategy. Your old spending habits will simply leave you in the same dark place as before. Redefine your budget in a way that you can afford. Create a new budget that keeps your head above water at all times. You’ve got a second chance, don’t waste it!
Money troubles are difficult to manage, and often terrifying. Face up to them today, and start making a change.