Little things can develop into huge problems. A few drops of water on the wall can turn out to be a massive leak underneath that requires emergency plumbing. Or maybe it is an unexpected energy bill that puts you in difficulty. Whatever the reason, there might be a time in your financial life when you want to press pause because paying isn’t an option for now.
When you can’t pay, it’s not uncommon to experience high stress levels and anxiety. You find yourself lying down at night, unable to sleep while your mind continues to worry. You lose your appetite during the day. You’re not yourself at work; you can’t concentrate.
This has to stop! There are plenty of solutions you can try when you can’t pay your debts.
Can you discuss the problem directly with the seller?
The first question you need to ask yourself refers to your financial situation. Indeed, there’s a significant difference between someone who struggles to pay all the bills and someone who’s got just one or a few problematic invoice(s) to deal with. If your situation is the latter, you can benefit from the help of an expert such as the insolvency practitioner Bennett Jones, to establish a contract with your creditors. Indeed, you can come to a legally binding agreement that will give you more time to repay your debts. This practice can help you to get your finances under control without putting your lifestyle and household at risk.
Is finding an additional source of income an option?
More and more people are considering the advantage of a side hustle business to generate the extra income they need. While it can take some time to build a side business, you can join freelancing platforms to offer your services on the go. Online jobs such as copywriters and social media managers can help you to cover unexpected expenses. Alternatively, you can also try selling your unwanted items on platforms such as the one-to-one selling website eBay. Decluttering your home could be the ideal solution to recover your debts!
Can you find the money elsewhere?
If you are in a spot of trouble and need to pay as quickly as possible, you might have to look for immediate money release options. Asking a friend or a relative to lend you the sum can be a solution. You should, however, insist on a contract between both of you which will guarantee you’ll repay. Payday loans might be a popular alternative, but they can be extremely risky with their high APRs and short repayment terms. If you are sure that paying your debts will increase your income, and hence enable you to pay back the loan, then it could be a valuable solution. Otherwise, you should stay away from quick loans.
The lesson for the future
Last, but not least, you can’t let your issue become a habit. Learn from your misadventure to design a budget and stick to it. Your budget should include expected expenses, as well as savings to tackle future surprise costs!
The gap between ‘I can’t pay for that’ and ‘I’ve lost everything’ is a lot thinner than you think. Consequently, it’s absolutely crucial to consider the best financial strategy as early as possible to prevent your difficulties from taking over your household.