For many people, as the end of the month approaches, so does their impending anxiety over their finances. With prices going up, unexpected expenses, and a terrible economy, money is tight. When credit cards are maxed out, accumulating more debt is just a typical reality, and you have looked into all your last-ditch solutions for cash emergencies, how do you gain control back over your finances?
1. Confront Your Debt
If you’re behind on your bill payments each month, or almost behind on your payments, it’s time to confront your debt. When you’re knee deep in debt, it’s easy to ignore it, for it’s too stressful to think about. However, not thinking about it only perpetuates the problem, for it becomes too easy to increasingly add on more debt instead of dealing with problem at hand. If you’re already in this much debt, what’s the harm in adding a few more dollars, right?
Wrong. Getting out of debt as soon as possible is essential to regaining control of your finances. Because of the costly payments debt brings each month, most of your income ends up going to pay off the interest, leaving little for the rest of your financial obligations. Thus, it is vital you confront your debt and work with a financial counselor to begin a debt-free payment plan.
2. Ask For Help
One of the hardest things for people to do is to ask family members for money. However, this can be one of the easiest solutions to getting your finances back on track. Most people need a jumpstart in the right direction, and asking Mom and Dad for a little help can give that jumpstart. If you’re uncomfortable with borrowing money from family, set up a payment schedule or payment timeframe where you can ensure them that they will receive their money back.
Although one of the biggest financial assets, a home is also one of the biggest financial burdens you can have. In many cases, the original mortgage loan rate is much higher than it needs to be. Refinancing your home can lead to a decrease in interest, thus making your mortgage smaller and financial burden lighter.
4. Get Creative
Even if you believe you have exhausted all possibilities for money, sometimes a little creativity can provide the assistance you need. Save money by cutting the cable cord, the home phone cord, and cancelling gym memberships or paid subscriptions. Look into selling your car for one that gets better gas mileage or is a manual transmission. Pay off high interest loans with lower interest loans from companies like TitleBucks. Stick to a meager grocery budget. Etc.
5. Side Work
Landscaping, catering, photography, nannying, app development, etc., are all jobs that can be done as freelance work, giving you the opportunity to make quick cash when it’s convenient for you.
Gaining financial freedom will take time and patience, but it is possible to get out from underneath your financial burdens with the help of these five tips.
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