Take Control of Your Financial Future with Debt Relief in New York
Debt struggles can occur to anyone at any time. Balances can slowly increase or pile up quickly as a result of unfortunate events such as the coronavirus epidemic. Regardless of the circumstances surrounding your debt, the fear is the same – how will you pay monthly bills, mortgage or rent, school loans, credit cards, and more. Fortunately, there are steps to take control of your financial future with debt relief in New York.
Debt is About More than Money
There are many uncertainties that can quickly spiral into overwhelming anxiety. A recent survey found that 77 percent of Americans are nervous about their finances. This is one reason why it is best to begin exploring your options to learn exactly what is indeed controllable.
Although there may not be a way to predict the future, it’s a good idea to consider your options. Take advantage of the solutions that fit best and work to avoid further losses and greater debt. Debt relief comes in many forms, and there is no packaged solution that suits everyone’s needs.
Managing Debt Begins with Managing Spending
Whether you have recently been furloughed, lost your job, or are just now addressing your debt, the first step is to begin reducing your living expenses, as much as possible. Paying back debts will be one of your greatest challenges. Therefore, it is best to adopt a top-down method of financial planning. This is where you identify and list your expenses beginning with the most important and non-negotiable expenses first (rent, food, fuel, etc.) down to discretionary spending (fast food, entertainment, etc.).
This simple list will visually show you where you can “find” additional money to pay toward your debt. It is here where you can set your first debt-reduction goals. Simple goals such as no longer buying fast food and cooking more at home are good ways to stay motivated during difficult times. Understanding that you may need to make temporary cuts to stay afloat until things improve will improve your outlook and help avoid mistakes that could impact your future.
Avoid Regretting Past Purchases
When people find themselves struggling financially, they often struggle with regret over past choices and the purchases they may have made which resulted in their debt problem. Although you may wish you would have saved more or had done some things differently, guilt is only a roadblock.
Instead of categorizing past actions as success or failure, view each decision as success or an opportunity to learn. Focus on what your mistakes have taught you and move forward. Accept the decisions, and the mistakes, you may have made and commit to avoiding them in the future. Experience is often our best teacher – even when it comes to finances.
Start a Budget to Begin Moving Forward
You may be an expert at mental math and frequently keep up to date with your bank statements. But a proper budget will help you get a bird’s-eye view of your finances. You can use a budgeting app like Mint, use an Excel spreadsheet, or use a pen and paper.
However you decide to budget, it is important to review your budget often. At least a few times a week. Even the best budget reviewed only once a month will likely fail. Why? We are human and may forget about purchases made earlier in the month. By checking in on our budget frequently, it will keep you focused with the ability to adjust your spending as the weeks go by.
When creating your budget, pay yourself first. This means saving some money for your emergency fund and paying essential bills (rent, power, etc.) early in the month after your first paycheck. This ensures you protect you and your family for the most important living expenses.
Take Control of Your Financial Future with Debt Relief New York
When you fear financial ruin is on the horizon, the likelihood of making impulsive decisions could make matters worse. Filing for bankruptcy, for example,could have serious long-term consequences. If you’re struggling to stay on top of your debt, it might be time to speak with a financial expert who is accredited such as our professionals at UmbrellaDEBT Relief.
No solution is immediate. However, by working alongside a professional, you can build a plan to achieve your debt-free goals and reduce your stress and anxieties. Remember, you are not alone when it comes to facing the struggle of burdensome debt. Millions are in a similar position – but only those who take action will find a brighter financial future.