Are You Overwhelmed With Financial Stress? Here Are Tips to Help You Cope

If you’re feeling overwhelmed by financial stress and fighting an uphill battle, you’re not alone. According to the U.S. Census Bureau, consumers reporting it was “very difficult” to pay their their bills during the last week spiked from 26.9 million in October 2021 to 43.2 million in October 2023. The good news is that there are practical steps you can take to alleviate some of that burden and regain a sense of control.

Take stock of your situation. Facing the truth about your finances can be daunting, but it’s the first step toward relief. Start by noting all your income sources, regular expenses, debts, and upcoming payments — as well as interest rates on debts, fees and penalties for late or non-payment. Understanding the full scope of your financial landscape allows you to create a roadmap to take action. Write everything down on paper or a spreadsheet so you can have a clear, visual representation.

Prioritize your payments. After you’ve listed all your financial obligations, start prioritizing payments based on urgency and potential impact or disruption to your life. Essential expenses, like rent or mortgage, utilities, and food, should be paid first. Then, look at which debts carry the highest interest rates or the most immediate consequences and handle them strategically. The goal is to minimize penalties and fees that further strain your finances.

Reach out to creditors. Many creditors are willing to work with individuals going through financial hardship. Don’t wait for penalties or interest to pile up before contacting them. You might find that your creditor has hardship programs that can temporarily lower payments or allow you to defer them for a while. Communicating proactively can help you avoid collections or severe penalties.

Seek Non-profit credit counseling. Non-profit credit counseling organizations can be a lifeline. These services often offer free or low-cost advice on budgeting, debt management and negotiating with creditors. They’ll work with you to devise a realistic budget, potentially consolidating your debts or securing reduced rates. Make sure to choose accredited organizations to avoid predatory practices.

Be Kind to Yourself

Financial stress can take on your emotional health. Seek out friends, family, or mental health professionals who can offer compassion and perspective. Whether it’s sharing your worries or simply finding a supportive ear, knowing that someone is there to listen can ease the burden significantly. Financial recovery doesn’t happen overnight, but by making a plan and reaching out for help when needed, you can gradually feel the weight lift. Be proud of the progress you make, no matter how small, and never lose hope.

 

Source

https://www.cbsnews.com/news/economy-inflation-why-americans-are-so-unhappy-three-charts/