Most of us grumble about our money on occasion. Maybe we’re complaining that we don’t have the cash for a nice little treat we might like, or that our bills are going up again and we have decreasing amounts of disposable income. This isn’t anything new and it’s certainly not a problem exclusive to you!
However, what if you find yourself in a situation where you’re not able to afford to meet your monthly financial commitments? What if bills are going unpaid? What if repayments on credit cards or loans or even worse, your mortgage, are being missed? Does that mean that you have a serious debt problem?
Of course it might do. However, you should try to avoid getting yourself worked up until you have actually assessed whether or not there even is a problem! Assessing your debt problem requires nothing more advanced than a scrap of paper and a pen.
You need to sit down and write down absolutely everything you earn each month. Include everything that is income, your wages, any benefits you might receive where applicable, any second income from side jobs and anything else at all. Then write down essential expenses. It is critical here that you really do only include the essentials – a new pair of shoes doesn’t count! Include your mortgage, any bills and a BASIC grocery shop within this.
Now you need to establish whether there’s a difference between the two. If your expenses are much higher than your income there is an issue there and the next step it to assess whether it will be long term. Examples of a short term problem might be in times where you are unable to work for a couple of weeks because of illness etc. This might mean that you have temporarily have less money. If this is the case and you know that soon your situation will be rectified, personally get in touch with your creditors and see if you can get a bit of help in the short term. If it’s looking like it might be a long term issue, on the other hand, your best move would be seeking professional advice.
Learn more about Debt Management #1. Stop by James Robinson’s recommended site.
Related Blogs
- Related Blogs on Personal Finance
- First Time Home Buyer Tax Credit Update | 20somethingfinance.com …
