5 Tips to Relieve Financial Stress
Money difficulties cause a series of problems, from divorce to illness. Disagreements about money are a leading cause of divorce, and constant money worries can lead to exhaustion and sleeplessness.
Millions of Americans are currently struggling with joblessness, uncertainty, and high debt. Fortunately, there are tangible steps that people can take to take control of their lives. Below, our Plantation bankruptcy attorneys offer five tips.
Seek Out Sources of Financial Support
If you lost your job due to the coronavirus pandemic, you should qualify for unemployment benefits, even if you were self-employed. Contact the state’s Department of Economic Opportunity to find out how to sign up. Unemployment benefits are not designed to fully replace lost income, but they can provide some money coming in the door.
Also investigate other government assistance programs, such as food stamps and housing assistance. Until you find a job providing steady income, you need to tap all available sources of financial support.
Some people already have a job but still feel like they are drowning. Now is the time to start a side hustle. You will have an easier time paring back debt—and relieving stress—when you bring home more each month.
Find Out How Much You Owe
Believe it or not, one source of stress is not really understanding your current debt situation. But you need to look a problem fully in the face before you can solve it.
You might get bills weekly and just throw them in a basket. Take them all out and add up the balances. This is what you owe. Also divide the debt into different categories:
- Credit card debt
- Medical debt
- Personal loans
- Student loans
- Secured debt (mortgage, car, etc.)
- Family support obligations (child support, alimony)
Also write down the interest rate you are being charged and how many more payments you have on the debt.
Fix Errors in Your Credit History
According to the federal government, 20% of people have errors on their report, such as incorrect balances or the wrong credit limit. Many errors drag down your credit score. The stronger your credit, the more options you have for relieving financial stress. You are entitled to a free copy of your report from the three major credit bureaus each year, so pick up a copy and clean up the mistakes.
Give Up a Luxury Immediately
This is a great way to start feeling like you are in control. The luxury could be something small like a morning coffee or a subscription to Netflix. By giving it up quickly, you get comfortable learning how to live more simply.
Create a Budget
Having a budget is the cornerstone of any plan for financial freedom. You will know how much you can spend each month, and you should free up extra cash each month that can go to debt repayment or an emergency fund. Once you create a budget, stick to it.
Speak with a Bankruptcy Attorney
Here’s a sixth tip—free of charge! Talk with a bankruptcy attorney in South Florida to see if you can eliminate your debts. Unsecured debts like credit cards, personal loans, and medical debt are easy to eliminate. Contact Nowack & Olson today to find out more.