The Biggest Financial Challenges Your Family May Face

- by Elizabeth Redfern
Full Guide to Managing Family Finances – Chapter 12

Families often face a variety of financial challenges ranging from low income and severe debt to illness and redundancy. How can a family face these challenges head-on and overcome them, rather than give up in despair?

Cashfloat guides you to face your financial problems

Problems of Money

If you don’t want to be part of the statistics that make divorce a fallout from money problems, it is important to realise that understanding about affordability for the family is vital. Living above your means and having different ideas about saving and spending can cause stress for any family. This is found to be especially so for those on low or fixed incomes. As a financial challenge, a low income comes top of the list of problems. But you can learn to live on less by sticking to a budget and working hard on reducing debts. Once the amount of debt has been reduced you will find that you will have a more disposable income.

Other Money Problems You May Face

Redundency

Losing the income of the primary breadwinner is another situation that occurs often. Many families go to the wall because when the regular income stops – for whatever reason, including the breadwinner falling ill or being made redundant – they are unable to function on a lower income. It can have a major effect on all members of the family, but this is another situation where a budget can help to allay everyone’s fears. Stick to spending only what you can afford rather than falling into the trap of alluring short term loans and the financial challenge can be met head-on. If you have become adept at budgeting when there is a regular income coming in, then you can apply the same principles when you no longer have this income to rely on.

Reducing the amount of debt that your family has is also a challenge that can make the most optimistic person feel daunted. However, there are lots of organisations that can help with advice about coping with debt and many people who had been deeply in debt have come out the other side wiser and more knowledgeable about how to keep their family money in order.

Ill health

Ill health is another situation that can prove to be a financial challenge especially if the illness is a chronic long term disease or condition. Get the help of relatives and professionals so that you do not feel overwhelmed by medical costs for prescriptions and caring for the family member who is ill. Some time out from caring can help to put things into perspective and will also assist you to remain calm and to get the financial help that is available through the NHS or other organisations.


Signs you have financial challenges and might need help

  • Late bill payments or often seeking extensions
  • Missing payments or only paying the minimum on credit cards
  • Not having the money to spend on necessities, for example, food, electricity, etc.
  • Increasing debt form loans or credit cards
  • Lenders take legal action against you
  • Possibility of eviction from not paying rent or loan repayments
  • More money going out then coming in

Are you financial challenges affecting your health and relationships?

  • Feeling anxious about money
  • Argueing with those closest to you about money
  • Feeling unwell
  • Headaches or migraines
  • Insomnia
  • Fear of opening the mail
  • Guilt when spending money on non essentials

What to do if you are experiencing with financial trouble

Fortunately, there are places to turn when you are feeling stressed over money issues. In the UK different debt charities offer financial support and guidance. They help you get your finances under control. Cashfloat is a responsible short term loans lender, and we are trained to spot signs of severe financial struggle, and we have teamed up with StepChange to ensure that our customers get professional help.

There are other ways to help yourself when you face financial challenges or to avoid them in the future.

  • Put away some money every month to use in case of financial emergencies
  • Communicate with the people you owe money to. In most instances, they will be very understanding, and together you can try and come up with solutions to ease the stress, like loan extensions or smaller instalment payments. If you have a Cashfloat loan online and are struggling to repay contact us and we will try to come to an arrangement that suits both of us.
  • Consider contacting a welfare service or your local council in your area. You might be able to receive help with paying your electricity, referrals to food banks etc.
  • Get help from your GP if you are struggling with your mental health like feeling overwhelmed emotionally and mentally.

Be aware of what you can afford

Being aware and having an understanding of how much your family can afford, will allow you to take control of your life, prevent a build-up of massive debts and be prepared for any unexpected expenses that might crop up. This means that you will be able to sleep at night without the constant worry about what financial challenge the next day may throw at you.

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About The Author
Elizabeth Redfern
Elizabeth Redfern is a born and bred Londoner who loves the city life. She is a proud chocoholic who enjoys reading, jogging and eating - especially chocolate! Elizabeth attained a first class degree in Mathematics but chose to make a career out of her real passion, writing. She has published many poems and short stories, but decided to join the Cashfloat educational channel writing team because she is passionate about helping people take care of their finances leaving them free to enjoy the finer points of life - most notably (in her opinion), chocolate!
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