I’m In Financial Trouble, What Can I Do?

Posted on Sep 3 2015 - 3:42pm by Editorial Staff

Let’s not beat around the bush, facing a financial crisis is one of the scariest problems of modern day life. Aside from good health, having money is a major priority for every family household. Money might not buy you happiness, but not having it can quickly make life feel a lot worse.

If you’re currently experiencing problems, the key is to find a solution ASAP. Leaving the situation is only going to exasperate matters, especially if you owe money. You need a plan of action to help find your way back to financial stability.

At times like this, knowledge is power. Here’s some information about what you can do to dig yourself out of this hole.

Image - 1

Photo Credit

Change Habits

It might not necessarily make a huge difference to your current situation, but you’ve got to accept that your spending habits need to change. Essentially, you must find a way to lower your monthly expense.

Small ideas like couponing can remove some of the pressure while you should also look to find cheaper energy bills and mobile phone tariffs. They might not sound like drastic improvements, but they’ll soon add up. You’ll be amazed at how much you can save by simply shopping around.

Living within your restrictions will make a significant long-term upgrade. It could be the key to ensuring you never fall victim to similar problems in the future.

Take A Short-Term Loan

Sometimes, we face financial problems due to an unexpected item. Perhaps a home fault needs quick fixing, or you’ve encountered another shock expense. These issues might not impact your life long-term, but they can make a huge difference to your immediate situation.

If temporary money flow is your problem, then Cashfloat might be the best solution. It can provide almost instant access to some much-needed funds, which can help you solve the short-term crisis. It might be worth borrowing a small amount more than you expect to need, just in case. However, we wouldn’t suggest taking out debt just for the sake of it.

This probably isn’t the best option to solve a long-term problem, but it can be a very effective way to solve cash flow troubles. In turn, this should allow you to get back on your feet much sooner. Phew.

Image - 2

Photo Credit

Take A Risk

Risking further debt isn’t advised in most cases. However, there are occasions when investing your money might pay off in a big way.

Trading in stocks or the foreign exchange can be very rewarding. Similarly betting on sports events could potentially drag you out of the hole. However, in both cases, it’s imperative that you remember the word gamble. There are no guarantees here, and it could just make the situation worse.

It’s not a route we’d suggest to many people. But it is an option nonetheless.

Find Another Job

In many cases, showing that you can pay back debts will buy you some time. Therefore, landing yourself an extra job could be the best solution.

If you’re already working long hours, this might feel like a nightmare. But desperate times call for desperate measures. Besides, you can always quit once you’ve paid off whatever money you owe. Should taking on another sound unappealing, you could always start an online business to help the cash roll in.

Alternatively, if it’s a short-term issue, you might be able to ask your boss for an advance on your wages. Just remember to account for this when planning your next month’s finances.

Image - 3

Photo Credit

Consolidation Loan

Sometimes, we land ourselves in hot water due to taking on several small accounts of debt. They can soon become overwhelming and leave you struggling for air. Not only is it difficult to find the money, it’s hard to keep track of your finances too.

Acquiring further debt might sound like a bad idea. In many cases, though, it is the best option. One consolidation loan could potentially clear off all other debts, leaving you with just one lump sum to repay. It’s far easier to manage while the interest will often be smaller than the existing small debts.

Just be sure to assess the situation properly. It isn’t always the ideal solution, and taking it at the wrong time might make matters worse. Nonetheless, it can often be your saviour.

Ask For Help

Borrowing money from friends and family might sound unappealing. If the option is there, though, you shouldn’t be too proud to take it.

Lending from loved ones will usually come with 0% interest, which will instantly help your situation. However, you must be sure that there is no confusion over your repayment plan, as these issues could lead to a falling out.

If you don’t trust yourself to pay the money back, then this isn’t the option for you. However, it can be a great salvage for those in need.

Image - 4

Photo Credit

Free Up Assets

It’s not a nice conclusion to accept, but sometimes your best bet is to get rid of your biggest assets. If you’ve got money tied up in these items, it could be the key to your financial freedom.

In a drastic situation, it might mean downsizing property. However, cars and other valuable items could be used to claw back some money. Meanwhile, you’d be surprised at how much cash can be raised by holding a garage sale to get rid of your unwanted products.

Losing some of your precious valuables might sound bad. However, if you don’t find a way to climb out of the hole soon, you could end up losing them all. We know what option we’d rather take.

File For Bankruptcy

Declaring yourself bankrupt should only ever be used as a last resort. Nevertheless, there are times when this is the best option available.

If you’re seriously considering this option, we’d advise looking into the impact that this can cause to your life. It’s not the end of the world, but there are some serious implications. In addition to personal research, it may be worth considering professional advice.

Bankruptcy is no laughing matter, but it might be the fresh start that you need. While you shouldn’t take the decision lightly, don’t rule it out altogether.

About the Author
Editorial Staff

Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.