Feeling as though your finances are a little tight from time to time is nothing new. Most of us have experienced that. But how can you really assess whether you’re just a little short thing month or whether you have a more serious problem that requires professional debt help?
It’s all about knowing exactly what money you have coming in and exactly what has to go out. So write down your complete monthly income, including any salary, income from lodgers, benefits – in fact, anything you receive each month. Move on then to do the same for your outgoings. List your essential expenses, remembering to include utilities bills, council tax, TV licensing, expenses relating to your car, food shopping and debt payments you have to make each month.
What you want to see if that your essential outgoings are lower than your income (ideally by enough to give you a little bit of disposable income too)! If this isn’t the case, then the deficit needs to be addressed. In the first instance, ask yourself whether this is a long term problem or a short term one. Perhaps you’ve been working less over the last couple of months due to illness? Maybe your salary is due to rise next month and that will take care of it. In other words, if you know exactly how the problem will be solved and this is in the next few months, then this is a short term issue.
However, if you simply don’t know how the problem will be addressed and it’s a longer term, issue, you would benefit from free, confidential debt advice tailored to your personal circumstances. Get in touch with MoneySolve to speak to an expert today.