How to Resolve Financial Problems

Financial problems plague just about everyone at one point or another. From attempting to properly manage credit to figuring out how to pare down debt, resolving financial issues can be more than challenging. For some, it may seem like a completely insurmountable goal. However, there are ways to resolve financial issues, many of which start with proper budgeting and discipline.

Instructions

1

Write down everything going out and coming in. This is the only way that you will have a clear picture of where your finances are and where you are going wrong. Put expenditures in one column and incoming payments in another. List every expenditure, right down to your daily cup of Starbucks, as well as your regular monthly bills like mortgage and car payments. This will give you a clear idea of what you need every month to pay your bills. It will also tell you where the financial issues come into play, particularly if you have more to pay than what you actually bring home each time you get paid.

2

Make a new budget. Making a budget is the only way to resolve financial issues so that you don't go deeper into debt. The budget should consist of absolute expenses that must be paid for survival, like electricity, food and shelter (rent or mortgage). Set aside any old bills or items in collections to be addressed outside of the budget. If possible, allow for some wiggle room to reward yourself every now and then. It is important to have even small rewards for sticking to the budget. This could be something simple like that cup of Starbucks you cut out of your daily expenditures or something a bit more elaborate like a new outfit.

3

Contact debtors to set up payment plans. Determine where you are having the financial problems and contact those companies. Ask if you can set up a payment plan that not only appeases the company, but also fits in the confines of your new monthly budget. If the bill collector is unwilling to work with you, then you may have to simply set aside a certain amount of money each pay period until you are able to pay off the balance.

4

Negotiate interest rates on credit cards and loans. Particularly if you have been a valued customer, ask for better rates to get your payments down and provide some breathing room in your budget.

5

Generate secondary streams of income if you have more going out than coming in. This is a common problem for people with financial problems and it may require some sacrifice to dig out of the hole. You might consider getting a second job at night or on weekends, or finding a way to make money online, such as freelance writing or virtual assisting. You might consider turning a hobby, like cooking or sewing, into a side business to generate extra income.