Introduction
11 million UK adults are struggling to pay their bills and debts.
That’s a hard stat to swallow. Shocking even. But it’s the grim and stark reality of our current economic situation.
It’s all down to the startling rise in the cost of living over recent times.
The price of energy, food and fuel has been escalating horribly over the past 18 months. People from all walks of life have been feeling the pinch.
If there is some good news. Inflation has dropped from its 11.1%, 41-year record-high last October. It currently stands at around 7.9%.
However, the effects of that drop will not be felt for some months to come. Indeed, home-owners and renters, will be facing heavy rate-hikes for the foreseeable future.
History has repeatedly shown us that economic ups and downs do occur from time to time. But that’s little comfort when you’re in the middle of it, struggling. Is there any help to be had?
This article explores the options available and what strategies you can use when personal finances come under attack.
What Can You Do To Reduce Financial Stress?
For one thing, instead of facing this hardship alone, the authorities are encouraging those struggling to ask for help.
The executive director of consumers and competition at the UK’s Financial Conduct Authority (FCA) said that it had told lenders that they should provide support specific to people’s needs.
3,500 lenders have been reminded how they should support borrowers who are undergoing financial trouble. The FCA has even instructed 32 lenders to change the way they treat customers.
As a result, 80,000 borrowers are receiving a share of £29 million in compensation.
So, essentially, if you are feeling the financial strain of the cost of living, reach out and seek help. It is there.
If you want to find a way to monitor and manage your money to prioritise your spending, we have a Money Management Calculator that might be useful. It is easy to use and available here https://demo.investment-mastery.com/insider/calculator-2
Money Worries, Depression & Mental Anxiety
“Feeling the pinch” is putting a somewhat weak spin on the great financial pressures people face.
It can even be a matter of life and death.
When you’re in debt, it can seem impossible and hopeless to get out of. Especially when you have debt collectors breathing down your neck, adding to your stress.
Which is even more reason to make sure you talk to someone.
Who Can I Talk To?
Talking about debt is never easy. It feels shameful. Thing is virtually EVERYONE carries some form of debt. That’s what CREDIT is after all!
So, really there is no shame in talking about it if you suddenly find your credit debt spiralling.
The brave thing to do is FACE IT before it spirals out of control. Because when it gets out of control is when the anxiety increases. And then becomes a real issue mentally.
People you should speak to immediately:
⦁ Your Mortgage Lender
⦁ Bank
⦁ Landlord
If they don’t offer any reassurance, try:
⦁ Citizen’s Advice
⦁ Trained Debt Advisor
If you feel they are not offering any real solutions, then there’s one other you can turn to.
Yourself.
Self-Help
It is sometimes the best way. It may seem daunting at first, but taking the bull by the horns can do two things:
⦁ Make you feel better
⦁ Help you feel more in control
A lot of that comes down to understanding.
Not just understanding your situation and solutions available, but understanding how money works.
More importantly, how your money is working for you.
Now you may think, that’s a daft thing to say, it’s obvious how money works.
But is it actually working for you?
Managing Your Money
This is the best way to start to help yourself with your debts. To help you get in control of your money, or regain control of it.
Using a money management tool like this one https://demo.investment-mastery.com/insider/calculator-2 is perfect for doing calculations.
And the very first thing to do is really dig deep into where your money goes.
Ask yourself:
What do I spend my money on?
Next, ask yourself:
Which of these expenses can I NOT do without?
That takes you to:
How much am I spending on things I don’t really need?
Then:
How much am I saving?
Lastly:
What am I putting into trading investments?
Using a money management calculator https://demo.investment-mastery.com/insider/calculator-2 helps you answer these questions easily, and automatically.
Conclusion
Not only does self-help work, it helps you work out where you are now with your money.
⦁ It helps you make a financial plan to move out of debt
⦁ Paves the way to start making more money
⦁ Then get some financial education under your belt
⦁ Learn investment strategies
⦁ Get to a point in the future where you never have to worry about money ever again
That may seem a dim hope right now, but you have to start somewhere, right?
And it all starts with understanding money and how it can work for you.
Did you know…?
You can get financial education here at Investment Mastery, because we’re not brokers, we’re educators.
For more than 14 years now we have been empowering people from all walks of life with the skills and knowledge to become profitable investors and traders.
You can be one of them.
Check out our trading courses for beginners now by subscribing to IM Insider [LINK].
What can you expect as an IM Insider?
World-class stocks, bonds and crypto education, along with the psychology that goes into trading and investing, as shared by our team of expert investors and their real-life hands-on experience.
Plus, our Bi-Weekly Newsletter helping you stay in the loop, while our Insider Community connects you to like-minded investors to share knowledge and trends.
Instant access to our plug n play user-friendly Money Management Calculator:
https://demo.investment-mastery.com/insider/calculator-2
Please note: All information in this article is the opinion of Investment Mastery and not to be taken or used as financial or investment advice. You must always do your own research before investing.
