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Having Financial Stress? 9 Things to Avoid

Bankruptcy attorneys in particular can provide legal advice and assistance with filing for bankruptcy if needed. Seeking professional help is the best way to ensure that your finances are in order and that you have all of the information necessary to make smart decisions about your money. If this sounds like you, our recommendation is not to wait until it's too late - take action today!
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Bankruptcy attorneys in particular can provide legal advice and assistance with filing for bankruptcy if needed. Seeking professional help is the best way to ensure that your finances are in order and that you have all of the information necessary to make smart decisions about your money. If this sounds like you, our recommendation is not to wait until it's too late - take action today!

Financial stress is very common and can have a massive effect on our mental and physical health. It can be hard to deal with financial worries, and it can be even harder to make changes to our finances when we don’t have a set of core practices to refer back to.

The good news is that this article will give you nine things to avoid when you’re having money problems so you can get back on track. If you are having trouble with your finances, keep reading to find out what you can do to get back in charge of your money.

Things to Avoid When Experiencing Financial Stress

When you’re having trouble with money, it’s important to keep in mind that it’s normal to feel overwhelmed. But to protect your emotional well-being and financial health, there are some things you should not do when trying to deal with the situation.

It is important to get advice before making any big changes or decisions about your finances. Let’s start with things you can control:

1. Don’t Ignore the Problem

1. Don't Ignore the Problem

When you’re having trouble with money, you shouldn’t ignore the problem. Stressful money issues require emotional support and a willingness to examine spending habits. Instead, confronting the issue can help you solve your money issues. Managing your finances and finding ways to improve them can give you a sense of power and control that will help you succeed – which means you are already on the right track by reading this article.

2. Don’t Take on More Debt

2. Don't Take on More Debt

Taking on more debt should be avoided when experiencing financial struggles and stress related to it. This is because taking on more debt can adversely affect your bank balance and make it even harder to overcome financial difficulties – digging you deeper and deeper while causing more stress in your life. Instead, it is important to take a step back and assess your spending habits as well as where you’re currently spending money.

Taking a closer look at where each dollar goes can help you identify areas in which you can reduce or eliminate spending, thereby freeing up some of your income that could be used to pay down existing debts instead of adding new ones.

If the debt is just getting too big to handle, you are starting to get worried, and there is no realistic solution in the near future — consider bankruptcy as a possible solution.

3. Don’t Make Impulsive Purchases

3. Don't Make Impulsive Purchases

Financial stress can lead to impulsive purchases. However, this may cause further financial issues and unexpected costs. Spending money requires self-discipline, especially in hard times. Maintain a budget and save for something that will contribute to increasing your bottom line instead of splurging on temporary, instant-gratification-related relief. Smart financial decisions now will pay off later.

Sometimes, this requires spending pattern analysis. Knowing where your money goes lets you make a budget and stick to it. This will help you save money and identify monthly savings opportunities. Instead of retail therapy, try long-term satisfaction.

4. Don’t Borrow Money from Friends and Family

4. Don't Borrow Money from Friends and Family

In tough economic times, borrowing money from family and friends can strain relationships and cause emotional stress. It’s important to remember that borrowing money from friends can damage both parties’ self-esteem by making them feel guilty. If the loan is not repaid on time or to the agreed-upon standards, it could further strain relations.

Creating a habit of damaging close relationships will only contribute to the cycle of increased stress levels in your life.

5. Don’t Put Off Seeking Professional Help

5. Don't Put Off Seeking Professional Help

When experiencing financial stress, it’s important not to put off seeking professional help. Financial coaches, bankruptcy attorneys, and other financial professionals can provide practical advice to help you regain control and get back on track financially. Financial coaches can help people create a budget, identify and reduce unnecessary expenses, establish savings goals, set up automatic payments, eliminate debt, and develop a plan for achieving long-term financial success.

Bankruptcy attorneys in particular can provide legal advice and assistance with filing for bankruptcy if needed. Seeking professional help is the best way to ensure that your finances are in order and that you have all of the information necessary to make smart decisions about your money. If this sounds like you, our recommendation is not to wait until it’s too late – take action today!

6. Don’t Avoid Communication with Creditors

6. Don't Avoid Communication with Creditors

When money is tight, it can be tempting to avoid creditors in hopes that the issue will resolve itself. But ignoring creditors can worsen your financial situation. If creditors can’t reach you, they may raise your interest rate or take other actions that could affect your finances.

If you don’t talk to your creditors, you may miss out on debt-repayment options that could reduce your stress.

7. Don’t Withdraw from Retirement Accounts

7. Don't Withdraw from Retirement Accounts

After a job loss or other major event, make smart financial decisions. Withdrawing from retirement accounts can have long-term consequences. Instead of borrowing, open an emergency savings account.

If you must withdraw from retirement accounts, consult a financial expert to create a plan that minimizes losses and maximizes long-term success.

8. Don’t Neglect Other Financial Obligations

8. Don't Neglect Other Financial Obligations

It’s easy to neglect financial obligations when struggling. However, they can have a long-term impact on your financial health and mental health. Missing payments or falling behind on credit cards or loans can lower your credit score and make it harder to get financing in the future.

9. Don’t Lose Hope

9. Don't Lose Hope

Financial stress can be… stressful! So don’t lose hope. There are many free financial advice and support options to help you get back on track. Experts like the Federal Trade Commission and those with similar experiences can help you make the best decisions for your situation.

Counseling is free. Self-care and relaxation can help you reduce stress and focus on positive actions to achieve your goals. It can also free up your mind so you can experience the creativity and focus necessary to find solutions to your financial problems. Never give up on financial control!

Causes of Financial Stress

Money concerns are a big problem because they can contribute heavily to poor mental health, It is common for many people to struggle with credit card debt, not having enough savings, or an inherently unstable financial situation. If you’re feeling overwhelmed by your finances, it’s important to take steps to improve your financial well-being.

Symptoms of Financial Stress

The American Psychological Association found that 72% of Americans are stressed at least sometimes. It’s important to keep in mind that money stress can actually cause physical symptoms. Money stress can have long-term health consequences. Financial stress can cause weight gain, heart disease, and other stress-related illnesses. To protect your physical and mental health, manage your financial stress.

Losing a job, having high medical bills, crippling credit card debt, or other factors can cause these issues.

How to Actively Reduce Financial Stress

Financial problems can show up in many ways, from worrying about money to feeling sick because of worry and fear. To reduce financial stress, you should make a budget that lists your monthly income and expenses.

This will help you spend your money on the most important things and keep track of your debt. Also, cutting back on expenses that aren’t necessary can help you get more money for other needs or wants. Lastly, you can also deal with financial stress by getting more work or investing your money to make more money.

1. Create a Budget

Making a monthly budget can be a good way to relieve stress and reduce financial anxiety. It’s important to make a budget that works for you and lets you keep track of what you spend and put your bills in order of importance. Having a budget will help you keep track of your money, put money where it’s needed, and avoid getting into too much debt.

Having a budget can help you meet all of your financial goals in an organized way, which can help you feel less stressed about money and live a financially secure and happy life.

2. Cut Unnecessary Expenses

One of the best ways to ease financial stress is to stop spending money on things you don’t need. This can help you save money and give your bank account a little extra cushion. One great way to get more money is to look at where you spend your money and cut back on things that aren’t essential to your life. Cutting out things like subscription services, eating out all the time, or buying things on the spur of the moment can cut your monthly costs by a surprisingly impactful amount. Make sure to also set aside money for savings. This can help you reach your financial goals.

3. Increase Your Income

We understand that in these uncertain times, it can be difficult to achieve financial stability and increase your income. But making more money can help you worry about money less every day. Easier said than done right?

We understand that it may be difficult to increase your income by a substantial amount overnight. However, there are things that you can actively do to contribute to a new life path which facilitates the natural increase of your income along the way.

Our main recommendation is to begin researching and learning different skills. Having a wide set of skills can make someone more “marketable” and increase the number of opportunities that they can take advantage of. Utilizing the free education available on social media platforms like YouTube can be a good place to start. Set aside some time to learn new things every day.

4. Prioritize Your Debt

If you are having trouble with money worries, the best way to reduce financial stress is to prioritize your debt. The best way to do this is to make a detailed budget that shows you exactly what bills need to be paid and in what order. Once you’ve decided how your debts should be paid off, make sure you stick to that order.

This means that if you can, you should pay off your credit cards, loans, or other debts before you pay for things like clothes. Also, try to get in touch with your credit card company or loan provider to see if they can help you out. Even if they can’t lower the amount they have to pay, they might be able to stop paying interest or fees for a certain amount of time. This would make it easier to pay back the debt.

If that isn’t an option for you, you can always consider filing bankruptcy and starting your financial life over with a clean slate. Bankruptcy provides people in debt with the amazing opportunity to eliminate some (OR ALL) of their debts.

Contact LSS Law to Learn More About Managing Financial Stress

Contact LSS Law to Learn More About Managing Financial Stress

If you are feeling stressed due to an inability to make your monthly payments, don’t lose hope. LSS Law offers no-cost Strategy Sessions where an experienced attorney sits down with you to help decide your best options for removing the financial monkey from your back.

Our experienced bankruptcy attorneys can provide guidance and advice on the best way to handle your debt and protect your financial future. Don’t hesitate to reach out if you find yourself struggling. Give us a call at 954-466-0541, send us an email at info@lss.law, or visit our Contact Us page at lss.law/contact to schedule your Strategy Session.

Frequently Asked Questions – Managing Financial Stress

Frequently Asked Questions - Managing Financial Stress

We understand that during this time, you may be experiencing a lot of stress. Not having enough information can further contribute to this stress. That’s why we wanted to find some of the most frequently asked questions about this topic and list our answers for them down below:

What are some causes of financial stress?

Mismanagement, unexpected expenses, rising costs, and low wages can cause financial stress. Financial stress is caused by insufficient funds for daily expenses. Unexpected medical bills and car repairs can strain budgets. If a person can’t afford rising prices, inflation can strain their budget. Finally, minimum wage earners may struggle to afford food and housing in high-cost areas. Financial security requires money management.

How can I reduce financial stress?

We can reduce financial stress, which can harm our health. Budgeting and sticking to it is crucial. This helps you track income and expenses. An emergency fund can help you weather financial setbacks and unexpected events. Talking to a financial advisor, experienced bankruptcy attorney, or bank about debt reduction options may also reduce financial stress. Finally, relax and clear your mind by implementing a self-care routine that includes yoga, meditation, recreational reading, or other stress-relieving activities.

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