How can we overcome major financial problems
Overcoming Financial Bottlenecks: With These 3 Tips It Will Be Easier
Increase spending discipline
If there is a lack of money, it is precisely at the beginning that you have to spend. Almost every citizen has expenses that are not strictly necessary. It is often difficult to part with the luxury that goes with it, but in these moments the thought that resigning does not mean lifelong waiver also helps. Some ideas at a glance:
- Subscriptions - they are only small amounts, but they add up. Subscriptions to streaming services, magazines, platforms and similar offers should be canceled. This is particularly easy with the offers that can be canceled on a monthly basis.
- contracts - they should also be checked. Which of them can be terminated now or soon? This currently includes unnecessary insurance, but also gym memberships. With the contracts that are important, it pays to think about cheaper alternatives. A few more euros can be saved, especially with electricity contracts and insurance.
In general, it's about lowering monthly expenses. Sometimes it is necessary to contrast the car with public transport. And the same applies to shopping:
- Necessary - Only necessary groceries and goods are bought. It is important to rely on own brands or special offers here too.
- Cooking on my own - Ready-made products, delivery services and takeaways must be avoided. It is always cheaper to prepare your own food, as you can cook for several days without any problems.
- dress - The following applies here: Only children in the household get new clothes if they are necessary. Most adults have enough clothes in their closets to easily go at least a year without a new item. There are certainly exceptions, but on average your own wardrobe is more than enough.
Financing to bridge the gap
It is often the case that the financial crisis is not that drastic, but the monthly plus is not enough to service all creditors and costs. From this point on, a vicious circle arises, since of course particularly urgent creditors are served first, so others wait. There are additional costs: dunning costs, collection costs, court costs. However, this problem can be solved with funding:
- Use - With the financing, i.e. the loan, at least a large part of the open items is paid for. For example, instead of ten creditors sending monthly reminders, only the loan installment is now on the expense list.
- possibilities - In general, the credit should be used to pay old bills and to give yourself a little breathing space in this way. Of course, financing can also be used to bridge short-term bottlenecks. Anyone who is currently unemployed and does not receive any money due to their own notice, but already has the employment contract in their pocket starting in three months, can also use the loan to bridge the gap.
- opportunities - A bridging loan can be a completely normal loan, but there are also enough offers that apply even to poor creditworthiness. Consumers should only search specifically and compare the offers with one another. Warning: never trust a loan shark out of necessity. In this area, too, there are a considerable number of portals that make serious offers available.
Financing itself has several advantages. On the one hand, it bundles all outstanding claims in a single loan, for which only one monthly installment can now be paid. The overview of the costs is therefore not lost. On the other hand, however, the financing protects against further costs. Everyone knows how much invoice amounts increase when dunning costs, collection costs or legal fees come into play. It is also not to be underestimated that your own creditworthiness is preserved, as the settlement of open bills prevents the dunning or enforcement procedure in the first place. Since the loans can be planned for the long term, it is quite possible to pay small monthly installments on a permanent basis.
Get an overview of income and expenses
If the financial situation is right, very few citizens take a closer look at the monthly income and expenses. There is enough money in the account, something is added every month, so expenses don't bother you. But while these thoughts are inadvisable in good times, they are dangerous in bad times. Therefore:
- Create an overview - A real overview of the inputs and outputs is created. At the top are the monthly fixed costs: rent, electricity, possibly gas, fixed contracts. Fixed costs are the costs that arise permanently and constantly without being able to be changed significantly.
- Calculate against each other - If the income and expenses have been drawn up, an invoice is drawn up. The expenses are deducted from the income. At this point, by the way, it does not matter whether a minus or a plus comes out. Anyone who is in a financial crisis must reduce every minus and expand a plus.
- Find savings points - this step goes again in the direction of the first tip. It must be looked at where the expenditure can be saved.
It makes sense to start keeping a budget book now. It mercilessly shows where the money is actually going. Many people who claim to be frugal have been taught otherwise by the household book. The devil is definitely in the details.
Conclusion - giving up would be the big mistake
There is always a solution even in the event of financial bottlenecks. Those affected are not allowed to just give up. It is never easy to cut your expenses, keep a budget book and do without what you love. But it's worth it. Especially since the reduction has a positive effect on taking out a loan to bridge or to settle open bills.
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