Making a Better Finance Future
Too many people are living from pay check to pay check. Some see nothing wrong with that and arguably in your 20s as you are paying off your student nation 21 cash loans and starting out on a new career that is excusable. However it is not good financial management to continue down that road. It is essential that everyone makes some provision for the future whether it is a retirement plan or starting to save in order to build up a fund in case of emergencies. The real danger is not only saving nothing but spending beyond your means using credit cards to buy things you can ill-afford and building up an expensive balance as well. That is the first thing that must go but it takes far more than an odd decision to repair damage. The road to financial recovery involves recognizing there is a problem to start off with and devising a strategy to not only alter course but to resolve to live an affordable lifestyle.
What is the process?
Admit to Your Mistakes. This is the first step; to admit that you have made and are probably still making mistakes. You have a problem and you have to find a solution.
Identify the Extent of the Problem. Write everything down in such a way that you can see the extent of your poor decision making.
Help. It may be early days to seek help but it is worth considering. You may even think that confiding in a good friend will somehow ease your burden.
Solutions. You certainly know the very general one which is to curb your spending. The detail may be harder.
Plan and implement. This is the detail with identifiable economies implemented and the self-discipline to avoid poor credit as a solution. A personal loan that will pay off expensive credit card balances may actually be a positive move incidentally.
Prevention is better than cure but you may well be past the stage of prevention though not past the stage where you avoid creating extra problems. If you have little financial expertise it may be worth looking online where there are bound to be many articles and blogs that talk about circumstances similar to your own. To some extent it is reassuring to realize you are not on your own but that does not clear the problem in itself.
You need to look at solutions to your immediate problem as well as getting more financially adept by learning from online advice.
As long as you have a regular income you will find sympathetic lenders who will judge an application for funds on its merits. It may seem strange to suggest that someone in debt should seek to take out more but it is not as strange as it seems, especially if that debt is incurring a high rate of interest each month as is the case with credit card balances. A loan that pays off those balances will be cheaper than carrying forward a balance month after month, merely paying the minimum required by the card company.
Try to Relax
Your problems will not go away without action but it is important not to let your problems overwhelm you. If you give yourself time to think things may become clearer.
There may be occasions where you can get out of a financial commitment. Perhaps you can return something that you have bought or at least renegotiate to reduce the financial commitment you have made. Some contracts do allow for that even if there is a slight penalty. If you can cut your losses then at least some things will go away. You should cut your losses and never feel as though you have to continue with something because you have already committed some money to it.
Forget feelings of guilt
Some people actually continue to spend, almost as though they are in denial. It sounds strange but it happens, almost as a means of avoiding feeling guilty. Don't feel guilty and stop spending.
You will have written down your mistakes. They can never be repeated and you must have the self-discipline to ensure you don't repeat them. If for example you are able to pay off your credit card balances, it doesn't mean you should cut them up but you certainly should never use them again if you can't pay off the full amount due when the next statement comes in.
You should have seen the extent of the problem but hopefully will be feeling a little better at least that you have arrested the damage. What you need to do now is to find savings that will reduce your monthly expenditure significantly. Additionally you have a good chance of saving on some regular household bills if you do a little research. Take for example your utilities. It is worth spending time researching whether you can get a cheaper supplier than the one you are currently using. All of a sudden your decision making is improving, and not before time!Read more Comments