Top Sources of Financial Stress—And How to Deal with Them
Are you constantly worried about finances? If so, then you are not alone. According to recent studies mentioned at the Motley Fool website, over 20 million Americans are stressed about finances, even with the economy experiencing a record-breaking expansion.
Some financial problems can be solved with a little work, though others are insurmountable. If you are in financial stress, you should consider all your options. Below, we present some of the top sources of financial anxiety and offer practical tips for tackling them.
Lack of Affordable Housing
One problem with living in Florida is that it is a popular destination, not only for other Americans trying to get away from high taxes and cold weather but also for foreigners coming from Puerto Rico and other parts of the world.
With this many people flowing in, the housing market can get squeezed. The more demand there is for the dwindling supply of housing stock, then the higher the rents and mortgages. This means that people are contributing more and more of their paychecks to cover the cost of housing.
One option is to downsize. No one really wants to do that, but it is probably the quickest way to reduce the amount of income spent on housing. Downsizing is usually easier for renters than for owners. If you have a mortgage and the interest rate is high, then you could try to refinance to a lower rate. That should reduce your monthly expense on housing.
Living Paycheck to Paycheck
Roughly 3 out of 4 people are living paycheck to paycheck. They constantly feel strapped for cash and have no money saved in the event of an emergency. If a car were to break down or a medical emergency were to occur, most people would have to pull out a credit card.
Building up an emergency fund isn’t easy, but it is doable if you start small and give yourself time. First, look at your budget. What do you spend money on? Next, find something small to cut from the budget. Instead of buying lunch at work, you could make your own, saving $50 a week. Put that money in a savings account and you’ll have $2,500 saved in a year.
Or you could cancel Netflix and save $15 or so a month. That’s only $180 after a year, but it’s a start. find other small savings opportunities and watch the money slowly accumulate.
Tackling debt depends on the debt you have. Many people have student loans which they fear they can never pay off. Fortunately, those with government loans have various repayment options, including asking for a deferment or forbearance.
If credit card debt is squeezing you, then you should consider whether to file for bankruptcy. A Chapter 7 is a great way to wipe the slate clean when it comes to credit card and most other forms of unsecured debt.
Speak to a Plantation bankruptcy lawyer at Nowack & Olson today for more information. You can call 888-813-4737 to schedule a free consultation.