Ways to Get Yourself Out of Financial Trouble
If you are facing yet another period of financial insecurity, it can be a real causer of stress and anxiety. You might be wondering what you should do in the long-term to try to avoid this feeling again, and what you should do in the short-term to get yourself out of the financial jam you have found yourself in. We ran into Mike, who had turned his life around from being homeless and financially ruined to the owner of several multimillion dollar properties.
This is what Mike has to say;
Luckily, there are quite a few simple fixes that can actually have a huge and lasting impact on your short and long-term financial health. Let’s break them all down together.
1.Live off of cash for two weeks.
This might sound a bit extreme, but if you are continually finding yourself shocking by either your lack of balance in your checking account, or a huge balance in your credit card account, you might be living beyond your means. One way to avoid over-spending, and get a lot of useful insight into what you spend your money on. You will also notice that it becomes harder to spend your money on frivolous things like an expensive midday snack, or that unnecessary Amazon.com purchase, if you are just using cash. The act of handing over cash and getting less back in return will make spending money much more tactile than when you are simply inserting your card.
If you can get through two weeks of not using your cards, chances are you’ve learned quite a bit about what you spend your money on, and hopefully you’ve saved yourself some cash in the meantime. If you decide to operate on a primarily cash-only budget past your two-week period, you will likely save and learn even more.
2.Get a balance transfer card.
If you are up to your ears in credit card debt, one great way to take control is to take out a balance transfer car. This is especially true if you have debt across multiple different cards. A balance transfer card can be a great help for a number of reasons. First off, it helps you consolidate your debt. That means that instead of having debt across multiple cards with multiple payment dates, you will now have just one date to keep track off.
The real benefit of balance transfer cards, however, come with their 0% APR promotional periods. If you have good enough credit score to take out a balance transfer card, chances are good you will qualify for as much as an 18-month 0% APR period. That means you won’t pay interest on your balance for a year and a half. That will give you a fantastic opportunity to pay off your credit debt in bunches without having to worry about accruing hundreds of dollars of interest fees. Just make sure that you don’t miss any payment dates, because if you do, you run the risk of having your promotional period cut short.
3.Track your spending.
If you are constantly shocked by how much money you are putting towards restaurants, drinks with friends, clothes, or even things you need like gasoline and groceries, a good way to really get to the bottom of your spending is to track your spending to the dime.
Get a little notebook, or use an app like Mint to keep track of everything you buy for two weeks to a month. You might find out you are spending way too much on your daily coffee purchases. By keeping track, you will also find that you are holding yourself responsible for the charges you make. That in itself can help you save quite a bit of money.
Once you have finished your period of keeping track, look back and figure out where you are really over-spending.
4.Take out a personal loan.
If you are really in a short-term financial bind and need some extra cash to give yourself a little breathing room, a great option can be to take out a personal loan. If you have good credit, you can qualify for a personal unsecured loan. They come with high interest because they are unsecured, but can be paid back over a long period of time and can help you get out of debt, and pay for the bills that are keeping you up at night.
If you do not have the credit to take out an unsecured personal loan, a great option can be a car title loan. The reason why you can qualify for a car title loan without good credit is because the value of a car title loan is based off the value of your car, not the credit score you are carrying around. Another benefit of car title loans is that unlike personal loans, which can take weeks to be approved, car title loans typically take no longer than 24 hours. In fact, if you head to a brick and mortar lender, you can have your cash in hand in exchange for your title within an hour.
There are a few stipulations, and a few risks that come with car title loans, however. First off, in order to qualify, you do have to have a lien-free car title, and the title has to be in your name. Your car’s total value also typically has to reach a certain value. If you can check all of those boxes, a car title loan car really help you get out of a pinch.
The primary risk of car title loans is that if you miss a payment or default on your loan, you risk getting your car repossessed. While this seems extreme, think about a car title loan just like any other secured loan, like a mortgage or a secured car loan. Sure, there’s risk, but if you manage your payments and pay back your loan and any interest you accrue over the life of your loan, you will be A-Okay.
There are many more ways to improve your financial situation, but these four tips are a great place to get started. Now is the time to figure out which option is the best for you.