It is important that you face your finances head on; this is the only approach that works long-term. If you are afraid of your finances then you need to take stock and move forward at being in control. There are danger signs that can highlight you need immediate help.

Danger signs to watch out for

There are different danger signs, which can indicate that you might have a problem with your finances, take control and stop them from getting worse.

• Missing bill payments or incurring late fees because you are late with the monthly payment. This is not always easy, but if you note down the payment due date of a bill and aim to pay this before that date, this should help take control of the situation. It is common to live from your wages, this is why we work, but if you are waiting for your wages to pay a bill then you need to realise that you need to manage your money better. It will avoid late payment fees and increased interest rates due to a high credit rating.
• If you are applying for more credit each month, credit cards and store cards, it doesn’t matter if they were offered; you don’t need to have multiple credits available. But if it is open, don’t just close them either, this could harm your credit rating too.
• If you are making payments with your credit cards to pay off bills and other credit cards this could be a danger sign that you have too many commitments and not enough money. It is vital that you sit down and create a working budget.
• Your savings are going down or you have no money put aside in savings. This is a sign that you are not managing your money wisely and could find that you have more problems in the future.
• If you are unaware of the amount of debt that you owe, is a big danger sign to watch out for; it is often an indication that you are in denial about your debts. Working out how much you owe and when you might be debt free is a great tool to come to terms with money that you owe.

Help when danger signs appear

There is help available when danger signs appear. There are charities that you can turn to that can help you with practical advice as to what to do and where to go for help. The Citizens Advice Bureau is a great place to go; they will be able to help guide you in the right direction.

Creating a budget is going to be the most important step; knowing the money that you have going in and out of your household is going to give you the tools to start creating a working budget.

It is not going to be easy and there is going to take a lot of effort to work out the amount of money that you owe and to get the help that you need to reduce this to a manageable amount.