How to handle financial hardship

Financial hardship can be a major cause of stress – and it often occurs when we least expect it.

Whether it’s the result of illness, unemployment, or a relationship breakdown, it’s important to remember that help is available.

Let your lender know

If you’re struggling to make your loan repayments, talk to your lender as soon as possible.

Depending on your circumstances, your lender may be able to offer you special consideration and help you work out an affordable payment schedule while you get back on track.

And acting early can often prevent a small problem from turning into a more serious issue.

Create a plan

Your next step should be to address the underlying issues causing your financial difficulties and consider any improvements you might be able to make.

If you think you might be living beyond your means, small changes can make a big difference, and a simple budget could help.

ASIC’s MoneySmart website offers handy budget calculators to help you work out where you’re overspending, and where you can cut back.

Or, if things are more serious, it could be worth seeking professional advice. The National Debt Helpline provides free financial counselling and is an independent and confidential service.

Safeguard your future

Consolidating multiple debts into one easy to manage monthly repayment could be another option to help you get back on track.

And, to ensure you don’t fall into the same situation down the track, you may want to consider additional precautions such as loan protection insurance.

For help to get started, talk to your local Liberty Adviser today.