Your palms are sweating; you are unable to take a sound sleep from quite some time, and you are feeling very anxious about something. It might sound like the night before your dream vacation, right? Wrong. In reality, you are probably suffering from something called FINANCIAL DISTRESS. But don’t worry- you are not the only one suffering from it.
As per a recent report there are more than 8 million people in the UK who are struggling with some sort of financial problems and debt.
Most people have been struggling for months or years maybe. Most of them keep their financial problem a secret and the stress takes a toll on their mental health. According to a study by the Money and Mental Health Policy Institute (MMHPI) nearly a quarter of people who attempted suicide last year were in the problem of debt.
More than 85% of Britons are living on paycheck to paycheck every single month. Not only they see their bank accounts dwindle but they also feel it.
So what is the solution to this? To make more money? Maybe in some situations. But very often, the increased salary can lead to spending even more on those things which you have always wanted to buy. Sounds true, right? But if you are not wise, that type of spending can cost you your health, your relationship, and maybe even your future.
What exactly is Financial Distress?
It is stress caused by financial occurrences in life that gives birth to anxiety and worry combined with a physical response. And once you experience any sort of financial stress, you won’t forget it soon.
Financial stress can come to your life out of nowhere. Usually, you experience it when it shows its real face. But to make sure that if you’re suffering through it is paying attention to few symptoms. Just to name a few:
It has taken a toll on personal lives of many people. But it doesn’t have to take over your life- or relationship. We are here to help you out in this regard.
Steps to Deal with Financial Stress
It’s time to leave behind your stress and start taking control of your financial life. Here are some ways to you can get your life on the track.
- Get Rid of All Your Debt: Yes. We mean all of the debt. You already know how stressful it is to worry about paying your bills when you’re in financial problem. Just imagine what it would be like if you don’t have to pay multiple interests every month from your paycheck.
One of the ways to achieve it is through a debt consolidation loan. If you have a bad credit record then you can get a debt consolidation loans for bad credit borrowers from online lenders. This way you can pay off all your debt in one go and instead of multiple monthly rates you have to pay only one.
So now you know that it will be worth? It’s time you start attacking on the debt.
- Make a Budget and Stick to It: Now you know what you are dealing with, it’s time to come up with a plan. That plan is called a budget.
Make note of your income and expenditure. Making a budget every month will help to check if you are spending more than your income and if yes then where you need to make a cut. Once you start doing it, you will be left with
sufficient savings. And who doesn’t love enough money in their bank account?
- Adopt the Baby Steps: A small step towards your ultimate goal is very important. It leads you from bottom to top gradually. Same is true
in the case of financial matter.
The baby step includes everything from saving for emergency, investing, savings for children’s future fund, paying off debt, etc.
With each step, you will get free from worry and stress and your journey towards financial contentment.
- Use Cash for Payment: Paying through cash ensures that you won’t get trapped into credit card debt. You don’t have to take stress about bill payment every month. Those who use credit card very often incur more debt.
- Read about Personal Finance: Keep educating yourself about personal finance. Read books, magazine, and newspapers related to it. Some people who are in debt seem not interested in learning about finance.
No one is
perfect in this world. We all faced this financial stress at one point or another in life. The important point here is to recognize bad money habits and replace them with good practices. That’s the reason debt-free people are often
very happier. They don’t money control their lives.