One of the most daunting things in life is looking at your financial situation and realising that you’re not going to make it to the end of the month. Nobody wants to be in debt and nobody wants to make a late payment on their mortgage or other financial obligations, but it’s something that we can end up facing due to unfortunate circumstances.
If you’ve just realised that you’re going to be in the red this month, then there are a couple of ways to help you cope with the situation.
Realise that it’s surprisingly common for people to have financial problems
You’re not alone when it comes to financial issues. Even if you were frugal with your money for the whole money, there are times where you might end up spending a bit too much due to emergencies or you might have neglected to look after your finances for a while. This is perfectly normal and is something you can recover from as long as you focus on your priorities.
Start cutting down even more expenses
Yes, it sucks to cut down on the things you love and the things you found to be necessary, but it’s a good time to start relying on your survival instincts by cutting out everything that is unnecessary. That means cancelling your monthly subscriptions for a while, it means saying no to going out at the end of the week, and it means cutting back on your meals for some time. Just keep focused on your priorities. You can live an ultra-frugal life for the time being to ensure you can pay all of your bills without suffering financial consequences in the future.
Look around for money that you’ve kept hidden away
This doesn’t mean physical money that you’ve kept locked away (though that can also come in handy!) but instead, it refers to any money that you’ve got hidden in your assets or savings accounts. For instance, you could check your investments to see if you can withdraw any money, you could look at any money or favours that people owe you, or you can even consider checking your savings accounts.
Try selling some of your belongings
Selling your belongings is a fairly common way to make some emergency funds for the rest of the month. If it’s just a temporary thing then you can always buy the stuff back in the future. However, there might be a possibility that you have a lot of valuable things at home that you’re not using or no longer use. For instance, old electronics can net you a decent amount of money, and you might have collectables that are worth something to the right buyer. If you see that you’ll be facing financial difficulties in the near future, then don’t hesitate to start selling off some things to make back some money.
Consider a loan
It’s a good time to start looking at loan services such as Plenti instead of just going to your bank. You should be looking for low personalised rates and ease of access to ensure that you can get the money in time for when you need it. If you’re able to pay back the money at the end of the month, then you’ll probably be fine with a short-term loan. The alternative to this is just asking a friend or family member for a small loan. If you only need a little to stay in the green, then you could consider asking other people for help. However, some people wouldn’t let this happen because of their pride. This is perfectly fine, but there are times where you need to set aside your pride so that you can overcome your financial difficulties.
When there are no other options, start making calls
One of the biggest problems we might face when we’re having financial problems is making late payments for loans, mortgages, and other lenders. In this situation, you might be able to simply contact the lender that you can’t pay back on time and letting them know about your situation. Most lenders would be more than willing to give you some extra time to make a payment, especially if you’ve been punctual with past payments. Lenders do understand that people will encounter issues here and there, so you should always consider the possibility of your lender letting you off the hook for a month or two while you get your finances back in order.