7 Tips To Get Your Finances Back On Track
It’s the end of the month, your bills are coming due, and you’re not quite sure how you’re going to pay for everything. The sinking feeling of panic and stress sets in. Your palms are sweaty, your heart is racing, and you feel as though the world is crashing down on you.
Not being able to pay your bills is scary. If your bills are bigger than your budget, here are seven helpful tips to get your finances back on track.
Face the problem rather than ignore it
No money worries have ever disappeared by pretending they don’t exist. Money woes are scary to face, but being proactive and acting quickly can help resolve the problem before it becomes a bigger, longer-lasting issue.
Make a list of all your monthly expenses and due dates
It’s critical to have a clear understanding of your financial situation. Make a list of all your bills and the due dates, to create a clear financial breakdown of your total monthly expenses.
Prioritize your bills
The most important thing you can do is take care of yourself first. If you must choose which bills to pay, prioritize the ones that cover your basic needs first: food, shelter, and utilities.
Contact your creditors
This may be hard to believe, but contacting your creditors may be a way to get some financial relief. Many creditors are willing to work with borrowers who are facing financial hardship. By explaining your financial situation and how long you anticipate your financial strain to last, creditors may help determine possible repayment options or alternate solutions.
Review your expenses and find ways to cut costs
Review your expenses and cancel anything that isn’t key to your survival. These expenses may include cable, gym memberships, and other unnecessary subscriptions. When you’re in a financial crunch, the luxuries can wait, at least until your finances are back on track.
Track your spending
If you don’t know where all of your money goes each month, you may be spending more money on small purchases without even realizing it. By tracking your spending, you can find potential areas to cut costs. Tracking your spending is a key step to making a budget.
Make a budget
Living on a budget may not seem like fun, but if you’re having a hard time paying your bills, using a budget to set spending limits is a good place to start. If you don’t know how to make a budget, check out our helpful budgeting tips.
You may be in a tough financial spot right now, but being proactive will help get your finances back on track.
At MCCU, we understand that our members sometimes face unusual situations that cause financial hardship. Let us help explore the best options for you by visiting https://www.membersccu.org/financial-hardship or contact us today.
The information provided is general in nature and may not apply to your specific situation.