If you are going through financial stress or are unable to manage your financial debt, the first steps should be to have a conversation about it. According to financial planners, most people are ashamed to talk about their money mistakes and finds it uncomfortable to talk about it.
Here is what you should do if you are in financial difficulty:
Talk about your money mistake
If you haven’t made the right financial decisions in your life, remember you’re not alone.
“From businessmen to salaried people, you can be under financial stress or get into debt. If the breadwinner has taken out a loan or has financial problems, they are usually not open to talking about it, ”said Mrin Agarwal, financial educator and founder of Finsafe India.
“One of the main reasons they don’t want to share information is because they don’t want to let anyone know that they’ve made a mistake. You have to talk about the mistakes to eliminate mental stress, ”Agarwal added.
Start by paying off your debt
If you’ve taken out too many loans, you don’t need to panic. You can start by writing down the details of all the loans you owe, along with the amount and interest rate. “If you’ve got a lot of debt, start by paying off the loan with the highest interest rate,” Agarwal said.
If you don’t have enough income to pay off the loans, look for ways to increase your income or sell your existing assets.
“In one case, to repay the debt, we put all possible savings in cash through systematic investment plan which was repurchased at regular intervals to repay debt, ”said Priya Sunder, director of Peakalpha Investment Services.
Reduce your expenses
Another way is to cut your spending until you pay off the debt. “You have to control your spending until the moment you can reduce the debt,” Agarwal said.
According to experts, debt compromises your peace of mind. “You keep skipping jobs assuming you aren’t earning enough. However, because you are not able to achieve mental peace, you are not able to do your job well. It’s a cycle to get out. In your 20s to 30s, you need to pay attention to manage your finances“Sunder said.
You need to save enough to be able to accumulate money. Once you are no longer in debt, you can go back to your usual way of life. However, to reach this stage you will have to sacrifice a bit.
Don’t be afraid to talk about your money mistakes. With a little help in managing money, you can get out of your financial distress.
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