A poll in recent years exposed the reality of the British people’s relationship with money. The statistics revealed three-quarters of people surveyed were concerned about their financial situation. At least one in five had no savings cushion to save them in hard times. And a vast majority wondered how they would cope if they lost their job.
Money worries is a big subject in the UK, causing numerous people immense stress, and in some cases fueling depression.
In particular, the pandemic is causing many people’s anxieties of losing their job to come true. Four in ten people declare either half or more of their income has been impacted due to the pandemic. Numerous others have lost their jobs entirely.
This guide gives you a few coping mechanisms to take control of your finances and in turn, ease your money worries.
Face Your Bills
The worst thing you can do is bury your head in the sand. Facing your bank statement and bills will help you understand the severity of your situation. And help you think of an appropriate solution to solve it.
If you haven’t yet, pluck out your unopened bills from the kitchen drawer, take a deep breath, and read through them.
Call Your Credit Providers
From car finance to mortgages, a TV, you have a payment plan for or a credit card balance with an interest-free period coming to an end shortly. Depending on how much you’re struggling, call a few of your finance and loan providers to let them know the financial difficulties you’re experiencing.
In doing so, they may be able to reduce or suspend your payments for a little while until your situation improves.
Ask For Help
If your savings are sparse, and you need money fast to pay for bills or debt payments coming out of your account in the next few days or so, you may need to ask for financial help.
You could consider asking a relative or a close friend. Other options include contacting Payday lenders providing you pass their checks; they will transfer the money to your account quickly. Enabling you to pay off any bills with ease.
However, be mindful of calculating whether you can afford to pay the interest attached to the loan, as well as the amount you’ve borrowed too.
Reduce Expenses and Curb Spending
Next up on your list to help you get your money worries under control is to write down all your outgoings each month. And contact a few bill providers to see what outgoings you can trim, cancel or curb.
For instance, you may be able to sacrifice your Sky TV package for a while or cancel your gym membership. Alternatively, you could switch energy providers to a cheaper company. Or, if you were planning a luxury holiday away, it may be best to park that idea until you’ve had time to sort out your income.
Sometimes, it may feel as though there’s no way out of your current money worries. But by using the tips above, you can hopefully get your finances in order. Other supportive organisations that can offer legitimate, free financial advice include the citizen’s advice bureau.