Hitting rock bottom financially is perhaps one of the worst life’s nightmares that can hit either an individual or a business entity. Failure to meet financial needs is not only traumatic but also erodes an individual’s self-confidence and sense of belonging. In addition, financial distress brings with it a baggage of numerous problems including constant fear, shame, guilt and to a large extent, money anxiety disorder. But, are there ways to overcome financial distress? Well, despite the situation looking out of control, it’s possible for the affected person to regain emotional control as well as financial grip by embracing the following vital steps.
Confronting the shame and guilt are common feelings associated with financial distress: When an individual makes wrong financial flubs like accumulating huge credit card debt, there is an inward feeling of failure. This, however, doesn’t have to be so. While many people will do anything and everything to keep others from knowing about their situation, it’s always advisable to confide in a friend or somebody trustworthy. This can be very liberating. Admitting a financial failure is a giant step toward letting go of the shame and gilt associated with it.
Focusing on financial behavioral change: A number of people who have endured financial distress vilify financial tools and swear never to use them again. For instance, a person who has misused a credit card may decide never to use it again. But, is the credit card really the problem? no! it’s the uncontrolled or unwise use of it. Modifying financial behavior to financial tools by perhaps adopting the wise use of a credit card can not only save money but also attract great rewards, other bonuses and offer purchase protection.
Taking responsibility: More important is to look closely at various factors that bring about financial distress or success. At times, other people’s actions or bad luck may have caused the problem. However, in most cases, the course could have been changed. Avoiding social pressures, keeping off from investing in an unwise financial asset or resisting impulse buying are some of the best-known ways to act responsibly financially. Owning up to former financial blunders and embracing the change by embracing healthy financial habits is vital to one’s financial stability.