Most of us have experienced financially difficult months or periods during which we wish we had just a bit more cash to hand. But there’s clearly a difference between a tight month and severe problems? So just how do you go about assessing the extent of your cash flow crisis?

Well, the first thing to address is whether  there’s a shortfall between your outgoings and your income. This will involve adding up every single thing you earn in a month, including your salary, income from second jobs, any rent you might receive plus benefits. Do the same with your essential outgoings, including rent or mortgage payments, any child support payments you might have to make, utilities bills, food shopping, car expenses, debt and credit card repayments and absolutely any other essential monthly payment you have to make.

Your income should be higher than your outgoings, preferably with a bit of leeway for your own personal spending as well. If this isn’t the case, then you need to address why.

Perhaps you have a short term issue? Such as the fact that your hours have been cut or you’ve been unable to work due to sickness.  In any event, if your salary will be increasing or your outgoing decreasing soon, to the point at which there is no longer a deficit, you have a short term problem. It’s still worth contacting your creditors to discuss this with them.

If, however, there is nothing immediate likely to resolve the issue, then you would benefit from professionally advice to discuss the debt solutions available to you. Get in touch today for free, confidential advice.