Solving money problems: Where to start
23 April 2019
You have recently found out that your super account is a bit lower than you expected, or you’ve you’re coming out of tax time with a big bill instead of a return as expected. Perhaps you’re concerned about making next month’s mortgage repayment, or it could simply be far worse. Read on for the steps to take when you need to solve a big money issue.
Step 1: Know what you’re dealing with.
Before we can start thinking about possible solutions, we need an actual handle on the situation – even if it’s scary to consider the actual depth of the situation you’re in. Open up your online statements and tally your debt (as well as the most urgent payment, and when it’s due). This will free your mind up to start considering a solution. Write your problem down on paper so it’s out of the ‘darkness’ of your mind.
Step 2: Brainstorm steps you can take to resolve it
To figure out your resolution, you need to work backwards. For example, if you’re short on cash and need to make next month’s mortgage repayment, list all your possible cash resources on a piece of paper. Perhaps you could sell an asset, or borrow money from your partner, or if you are waiting on a tax return - that may arrive just in time so chase it up!
To come up with a plan of attack, identify the consequences involved in each option and weigh up the pros and cons of each.
Step 3: Take action
Don’t delay on taking action - whether it’s making a few phone calls to let your bank know that you’re struggling a bit this month, or seeking expert advice in a more serious issue such as fraud. The saying goes: “if something can be solved by action, it’s not a problem.” To stop your worry, take action. Simply pouring your change jar out and putting that sum of money on your credit card might be the first simple step. Shopping around to refinance your mortgage could also be an option that will help you in the long run, and is a little action you can take quickly that can be very empowering.
Don’t forget, there are free legal aid and financial services in every state of Australia, so spend some time researching the support you can use, and seek their advice. You might be surprised how quickly you can find a solution to your problems when you tackle them head on.
If you’re experiencing financial difficulty, BUSSQ can help you. BUSSQ has a team dedicated to helping members through difficult times by working through what services may be available to provide assistance. If you need help, call us on 1800 69 2877.