If you’re experiencing financial difficulty – if you’ve taken some hard knocks – then you’ll know how quickly things can spiral. We look at five ways you can take charge.
Give me the main points
- Get in touch with your bank ASAP – talk to their financial hardship team.
- Don’t let things drift – work out a realistic budget.
- Set some financial goals (however humble).
- Start saving towards these goals. First one is to establish a ‘buffer’.
Here are five practical steps you can take when things don’t go to plan.
Contact your bank
The majority of customers don’t call their bank if they’re feeling like they’re losing control of their finances or experiencing financial difficulty. This is a mistake.
While it can be hard to make the call, you’ll usually find your bank will be receptive and reasonable.
They’ll look at your individual circumstances and work on a plan. It might be a short break from repayments. Or perhaps a debt consolidation loan (at lower interest). The important thing is to talk to someone before it’s too late.
Work out a budget
When you’re battling, it’s easy to let things slip-to spend money you don’t have.
Working out how much money is coming in—how much you’re spending, where it’s going, and what changes you may be able to make—can help you take charge of a situation. Take control back.
Once you’ve sorted out your budget, you’ll be in a better place to set some realistic goals. This might be to pay down your credit card, personal loan , to save for a washing machine or build up an emergency fund for the future.
Setting goals, however humble, is satisfying.
Once you’ve got a budget in place, set goals, and mapped out a financial plan, you can start saving. Most of us know the basic saving rules—how the secret is to make it a habit and start today (or tomorrow if you must). It’s true—a dollar here, a dollar there adds up: it’ll do wonders for your morale if you see your debts dropping, and your assets building.
We’re here to help
A financial adviser can provide you with advice to help you manage your debts efficiently. To find out more, contact us today.
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Wealthness Pty Ltd (ACN 613 313 250) [t/a Better Financial Planning Australia] Corporate Authorised Representative of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL Licence No. 236523. Source: MLC.MAY 16, 2019