Finance problems are far more widespread than one may think. Unfortunately, no one is immune to money worries, which is why it’s crucial to know how to recover from poor finances quickly. Below are the must-know solutions to three of the most common money-related issues.
You’re in debt
According to key statistics, the average person in the USA has about $38,000 in personal debt, and this amount excludes home mortgages. In short, Americans are certainly no stranger to debt. As most will know all too well, while it is quite easy to fall into a financial hole, it is much, much more difficult to get out of it. If you are struggling to pay your creditors, here are some helpful tips to keep in mind:
- It seems obvious, but the first place to start is with a budget. Creating a budget can help to curb overzealous spending habits and will help you to figure out exactly where your money is going each month and how much you have available to use to repay your debts.
- Find out if you are entitled to receive state benefits, and be sure to put them to good use.
- Speak to your lender(s). Regular communication is vital if you are struggling to meet expectations when it comes to your payments. Some lenders will be happy to organize a new payment plan to suit your situation.
- Seek help immediately if you find yourself in a debt crisis. The USA is home to a large amount of free, non-profit debt counseling agencies who are equipped to help you navigate your way through debt that is rapidly piling up.
You have bad credit
Bad credit can work against you in many ways. First and foremost, you are going to have a difficult time finding lenders who are willing to provide you with financing for larger purchases, such as a new car or a house. Here’s what to do to make improvements to your credit report:
- Obtain your free credit report by visiting www.annualcreditreport.com
- Pay your bills on time and in full the moment you receive them.
- Avoid missing repayments.
- Avoid maxing out your credit card.
- Pay off any already-existing debt as quickly as you can and ensure that you do not create any more.
- Dispute inaccuracies on your credit report.
- Don’t lose hope. Just because you have bad credit doesn’t mean that you won’t be able to find a lender willing to assist when it comes to buying a home or car. The best way to do this is via a comparison website like www.themoneyhub.co.uk, which helps you identify and compare deals from lenders who may be willing to accommodate you in your current bad credit situation.
You’re struggling to save
Paying bills is important, but saving money is too. If you, like so many other Americans, are struggling to save, here are a few pointers:
- Make saving a priority and include it as part of your budget. Strive to save around 10-15% of your income per month to start with.
- Sign up for loyalty cards and make the most of the benefits.
- Define your savings goals. Know exactly how much you want to have saved by a specific date.
- Make sure you have chosen the right savings account. A worthwhile account will pay around 2% in interest.
Keep the aforementioned guidelines in mind, and you will be well on your way to a healthier financial situation. Best of luck!