Worrying about the health of your finance can cause a lot of undue stress, especially in times of crisis.
According to the Financial Wellbeing Index 2019, 25 million UK employees are affected by money worries while at work. A study conducted by Metro’s Mentally Yours revealed 77% of UK residents are worried about moneyWith the UK entering a recession and with economic uncertainty, financial welfare is at the top of the agenda for many of us.
With that in mind, here are some of our top tips on managing your money worries.
Get a feel for your current financial situation
The first step to alleviate money worries is to understand what your financial health is in the present. Knowing your cash flow, debts, credit score and overall income are the keys to breakthrough in your financial journey.
You can download Portify here to get a better understanding of your cash flow, expenditure and income. You can also print off your bank statements, and compile a list of all outstanding debts, current income and your credit profile. Portify offers a simple and easy way to build your credit score with Experian, Equifax and TransUnion.
Create an effective financial plan
Once you have a picture of your current cash flow, creating a meaningful and effective plan to tackle your finances is a great way to alleviate your money worries.
If your main problem is lack of income, you can explore some more creative ways to increase your income through exploring new job opportunities. You can also explore ways to cut down on your expenditure, and figure out the best budget for your circumstance. Check out our blog post on it here.
If your main problem is dealing with debt, finding the most effective strategies to pay off debt, or at least temporarily reduce the burden of debt, is key. Depending on the level of urgency, you may need to prioritise paying off more pressing debts. We’ve written a more detailed blog post on managing your debts here.
Check if you are eligible for loan deferral programmes
The FCA remain dedicated to helping consumers in the midst of uncertainty, and have taken some steps to ensure that you are protected.
They offer a number of deferral programmes and packages for those with existing loans. To find out whether you are eligible for this, check out the FCA page here.
Reach out to your debt holders for help
Engaging with your debt providers during the times you are facing increasing worries is crucial.
Keep your debt providers up to date with your financial situation, and ensure to explore payment options if you find yourself stuck in a rut. You can find our article on managing debt and engaging with your loan providers here.
Prioritize your mental health
Money worries can have an adverse effect on your mental health. The emotional and psychological distress caused by worrying about your finances can lead to bouts of anxiousness, panic, and other common problems you may be feeling at this time.
You can also directly refer yourself to a psychological therapies service without seeing your GP. These services provide a range of therapies and can be found on the NHS website here. More broadly, if you’re looking for someone to engage with more broadly about your emotions, there are a number of support groups available in the UK. A great organisation to contact is the Samaritans, who offer free support and resources to help you with a number of your financial worries.
As much as ensuring your financial health is in check, prioritising your mental health is a key component to help soothe money worries.
Maximise free financial advice
There is a wealth of free advice out there to help you manage your money worries. At Portify, we’re always happy to help, so check out some of our other blog posts to find out more information on debt, budgeting, credit and more.
You can also find free advice from trusted third party sources like Citizens advice, as well as Money Supermarket. We’ve provided links to these sources below.
Here is our list of extra resources to help you with some of your financial worries.
- For free advice on managing your finances and dealing with debt, check out Citizens Advice here for more.
- To find out more information on managing your money, have a look at Money Supermarket here.
- If you want to build your credit score, Portify can help. Portify offers a simple and easy way to build your credit score with Experian, Equifax and TransUnion.
- Join a community building towards financial freedom on facebook and instagram.