Financial problems are one of the worst problems to face in the life because they have an impact on everything that we have. These problems can have long lasting effects and could stop us from our future progress. The other day I was cleaning my dishes in the kitchen, I realized that it was taking too long for the dishes that were in the kitchen for a time while the others were just cleaned in seconds. It just clicked my mind that it is same like my financial problems because if we do not solve the dispute and just keep it, it becomes difficult to get rid of it whereas if we have a problem and we try to get rid of it immediately, it become easier. Thus in my opinion if we solve the problem on the go, then this can save money, time and a lot of our efforts. So that is why I thought to give you some tips to solve your financial disputes in the fastest possible time. So let’s start,
How to Confront Your Financial Disputes?
The first thing that you need to do is that you need to find and recognize your financial problems. Because many of the people does not even know that they have financial problems that they need to solve. These people does not recognize until they are drowned in that problem and then it becomes difficult for them to get rid of it. So if you know that you have a problem, the next thing you need to do is to think about it and make a plan by which you can solve that problem. There are some common issues that a person could get in and today I will tell you about some of these problems and how can you get rid of it immediately.
Paying Bills after the Due Date
This is the problem with most of the youngsters as because when they were young, it was not their duty to pay the bills but when they get financially stable they have more bills to pay. When you pay the bills after the due date, you are charged with a fine and that is the amount that you could have saved if you paid the bill on time. So this is a problem that you need to deal with in order to keep your finances in a managed way. So you should pay your bills on time to avoid these kind of fines and you should pay the bill as soon as you receive it.
If you get late to pay the bill than keep in mind that many service providers have a grace period of 10 to 15 days before they charge a late fine. But still if you are charged with a late fee, then you can call the service provider and could ask them to waive out the late fee. You will have to be apologetic and there are chances that the fee could be waived. You can also use online apps that could help you to remind if there is a bill that you need to pay.
Over drafting is one of the issues that people does not count but if you are able to buy things without getting overdraft then this could help you save hundreds of dollars. Once I made some purchases, I did not knew that I was buying them on the overdraft and in the meantime I was charged a $35 fee for my purchase. If you are facing the same issue then there is a solution to this.
If your purchasing is not completed then you must immediately transfer money in to your account from your savings or retirement account to avoid that fee. If your purchase had been completed and it is been the first time that you are charged an overdraft fee then you can call your bank and ask them to waive this fee, most of the banks could waive the fee if you ask them, so there is a chance if you call your bank.
Taking More Credit Cards
Yes this is a problem that if you keep more credit cards than you need. This can lure to spend more money than you actually need and you will end up in a huge amount of debt with high interest rate. When I got eligible to get a credit card, I applied for a different number of lenders to check whether they would allow me to lend money or not and I got accepted from 5 different companies. I admit that I just did that to check whether how many companies can provide me with a credit card and this lured me in to a huge amount of debt. This is serious problem as it could lead to a huge amount of debt, so there was a need to cure this problem.
So the first thing you need to do to solve this problem is to make an emergency fund. All the financial experts suggest to first make an emergency fund before you start paying off your debt. This can prevent you from taking further debt if there is an emergency and you can also continue paying the debt payments without any interruption. After that you have created an emergency fund, the next thing you need to do is to cut your credit cards. Keep in mind that I did not said that you should close your credit card accounts but instead of that you should stop using them because if you close the account you will have to pay even more. Use cash instead of credit cards for your daily expenses and stop using your credit cards. Make a suitable plan to pay off the debt such as follow the Debt snowball method and pay the debt in the shortest possible time.
Co-Sign a Loan
Co-signing a loan could become a nightmare for you if the other person is not paying the loan on time. This could also be vice-versa and you could affect the credit of the next person by missing a payment. When I wanted to buy my first car, I got a loan from a lender in which I cosigned my mother. I did not have enough income at that time so I was not eligible to take the loan on my own. The next thing that happened is that I missed some of the monthly payments that hit my mom’s credit and mine too.
So if you are in the same kind of condition where the next person mistakes are costing you negative points than the first thing you must do is to get rid of that loan. When you co-sign a loan, your intention is to help the next person but sometime this could cost you. So try the best you can to get your name out of that loan so that you could be only responsible for the mistakes you do.
Buying a House That Can’t Be Afforded
Many people tend to buy mortgages for house that they do not need or that are more than their requirements. I did this when I was promoted to a higher rank and my salary increased, to use my salary in a way that could help me in the future, I bought a house on a mortgage that was more than my salary. At that time, I already had a house so I just rented that house out and was able to pay the mortgage payments. But after sometime I lost my renters and it was difficult for me to pay the mortgage payments. So that become a headache for me to manage all that.
If you are facing the same issue and had a house more than what you need than you must consider downsizing, this could help you to save huge amount of money. If downsizing is not an option for you then you can also use other platforms to get renters for your house.
So this was it from today, do comment in the section below and let us know if you have any queries regarding the article because we would love to hear from you. Best of luck!