The longer you put off dealing with financial problems the worse they get and the
worse the pressure may become. So, tackle your finances today – follow our six steps
below to help you get back on track.
Talking to someone you trust whether it’s your partner, a family member or a friend
is the first step in tackling your financial situation. They might not be able to
advise you what to do, but they can provide you with emotional support as you work
out how to get on top of your finances.
It’s important that you set aside a good chunk of time to focus on your finances
– depending on your situation this could be half a day or a whole day. Use the time
to work out the facts. Who you owe money to, how much you owe and when payments
are due.
Write down your financial goals and prioritise them. If you have high-interest debt
it is usually better to pay this off before paying off other debt, or saving towards
other goals.
Your budget can be your most important financial tool. You can see exactly where
your money’s going, and that means you can make informed choices about how you spend
it. A budget should also illustrate where you can make savings in your current spending.
However, a budget is like a diet, it has to be realistic or you won’t end up sticking
to it. To get you started you can use our
online budgeting planner or if you need some help you can call Family Budget Services on 0508 BUDGETLINE
for free, confidential budgeting advice.
If you have fallen behind in your bills you may be getting collection letters or
phone calls. Ignoring these communications won’t make them go away, so don’t be
afraid to ask for help if you need it. If you contact these organisations you may
be able to set up a repayment schedule to pay off what you owe over time.
Family Budget Services also have
strong relationships with government agencies and utility companies, and may be
able to help you set up repayment agreements.
If you are having difficulty making repayments on your credit card, personal loan,
or home loan, talk to your bank or lending provider sooner rather than later. They
are likely to have a range of options available to help you manage your repayments.
If you let the situation go on for too long without talking to your bank, the number
of options available could be reduced.
It goes without saying that once you have a plan for managing your finances in place
you need to stick to it. If your financial situation changes (i.e. a drop or increase
in income) you should review your plan and ensure it is still practical.
Once you have paid off a major debt or achieved one of your financial goals make
sure you reward yourself in some way. It’s easier to keep going with a financial
plan if you celebrate the milestones along the way.