You have a family member who is in debt but you’re not sure how you can help them. Sound familiar? If so, know that there are ways that you can help your loved one get through this rough patch without having to hand over hundreds or thousands of dollars. The following are different ways to help someone who is struggling financially.
Explore the Different Options Available
Does your loved one have more than one student loan? If so, have they thought about the possibility of refinancing their student loans? Doing this could result in lower premiums and one monthly payment instead of multiple.
It’s a great way to make savings and it’s becoming increasingly popular with graduates. Perhaps they’ve overspent on their credit card and the interest rates are sky high? If so, has he/she considered taking out a personal loan to pay off the cards?
Again, doing this could result in lower premiums and one monthly payment. It can be easy to get tunnel vision when money issues arise so it’s important to be a figure of clarity for your loved one. Help them explore their options and create a plan of action to tackle the problems.
Provide A Listening Ear
There are plenty of people around the world struggling with debt so your loved one isn’t alone, and it’s important that they know that.
Feelings of anxiety and wanting to self-isolate can creep up very quickly so it’s important to offer a listening ear when it’s needed. Make sure not to be judgmental and only give advice if you feel that it will be received well.
Be an Accountability Partner
Accountability is so important when it comes to keeping on track with most areas in life, but it’s especially important in managing finances.
Help your loved one set goals and do what it takes to create a budget and track all income and expenses. Set up regular check-ins where you’ll be able to review the progress and see if there’s any room for improvement.
As an accountability partner, your job will be to provide practical advice and the motivation that’s needed to keep going and hit targets.
Plan Cheap (Or Free) Outings
You don’t have to put your own lifestyle on hold because someone else is struggling, but what is a good idea is to swap out the activities that require lots of cash with ones that cost less.
If you two used to enjoy dining out for dinner on a Friday in an upscale Italian restaurant, why not make homemade pizzas or get a takeout and a bottle of wine instead?
If you were gym buddies before the membership had to be cancelled, why not hike, bike or go for a run in the great outdoors? Love the cinema? Rent a movie at home instead. It’s these little changes that will make a huge difference to your family member’s monthly expenses. And, the best thing of all is he/she won’t feel like they are missing out, which is just as important as saving those dollars.