In fact, talking to others about personal or business debts can be difficult. To reduce your financial stress, it is important to find answers and solutions to resolve these difficulties. As you already know, living under stress is harmful for your health and it can impact your physical, mental and even relational health.
Tips for reducing financial stress:
According to a Léger et Léger survey published in the Journal de Montréal , anxieties related to debt affect one in two Quebecers. A statistic which undeniably shows that the financial situation of half of Quebecers is not up to their expectations.
There are some things you can do to help reduce this financial anxiety. Of course, some solutions can take time to improve your financial situation and others can quickly pay off your debts. Depending on your situation, the right solution to consider should be analyzed by a financial health designer . If your financial troubles are light, revising your budget can go a long way in helping you out. However, in all cases, revising your budget is the first step in analyzing and understanding your financial woes. When you can no longer see it clearly, do not wait before meeting an advisor who will explain the different solutions to debt .
How to resolve your debts?
There are several possible ways to eliminate debt . The debts will not go away by magic. So, it will take concrete actions to settle your debts for good. Take the bull by the horns and don’t let your goals sidetrack you. For example, making a plan of action, budgeting, tracking down debt, spending thoughtfully, reducing credit, saving money, and consulting an expert are all great habits to take.
Develop an action plan: To start, you need to establish an action plan. It will be used to settle your debts and reduce your level of anxiety. To do this, you will need to establish your actions to take in order to achieve each of your goals. In order to pinpoint your realistic goals, you will first need to be aware of your source of anxiety.
Make a budget: Omitting to budget means going to an unknown destination without an itinerary. In other words, if you don’t have a budget, you’ll waste time trying to save money and achieve your goals. The budget will allow you to understand the money available monthly. Making a budget helps you understand how long it will take you to save $ 10,000, for example. Complete your free and downloadable budget
Identify your debts: Your debts are all the creditors to whom you owe them money. Possible debts are: student loan, bank loan, mortgage loan, car loan, line of credit, credit card, etc.
Spend Thoughtfully: Before making a purchase, take the time to consider whether the expense is necessary. Evaluate the consequences of a purchase on your budget. If you shop online, wait a day before you complete the transaction. Very often, the next day, the desire to go to the cash will no longer be there. If you are in a financial crisis, stop wasted spending and focus on what is needed.
Reduce credit: Credit is not always an ally. Credit is also not an extension of your payroll. Money borrowed by credit will always have to be repaid at the end of the month. Using credit to meet a primary need such as food is a sign of financial difficulty. Moreover, it is possible to contact your financial institution in order to reduce the amount available on your credit card. You will thus be forced not to spend more than what you are able to reimburse. For example, reduce the amount to $ 1,000 or less if you are unable to repay more.
Save money: Saving will always remain the safest and most favorable solution to a financial plan. The financial cushion is used to compensate for daily unforeseen events. The emergency fund is used to mitigate major unexpected events such as the financial consequences of the coronavirus crisis. Saving money is a must for the sound management of personal and family finances. Besides, having savings also serves to reduce your source of stress related to money and debt.