Indebtedness: How You Can Aid Those Closest to You
Being indebted or short of cash can be frightening, stressful, and depressing. For those watching from the side-lines, there is often a sense of powerlessness, married to a wish that you could help the person you care about to resolve their situation.
If you really want to, you can. Although some people are proud and embarrassed by financial troubles, most really appreciate those closest to them reaching out a helping hand. Even if all that you can offer is emotional support, it could make all the difference in the world to someone who is struggling.
So what can you do to make a difference? Here are three ideas to inspire you…
#1: Help to Create a Budget and Financial Plan
One of the most helpful things that you can do when a friend or family member is struggling with money worries is offer them emotional support and practical assistance, so you might want to try asking them if they’d like you to sit down with them and go over their budget. If you’re good at controlling your own finances, try passing on your skills and tips, and take a look at areas where they can free up a little more money each month. Going forwards, you might want to suggest ways that they could increase their income in the future, whether this is looking for a new job role or applying for more hours.
#2: Offer to Lend Them Money
If you’re in a position to, you could also offer to lend your loved one some money. Start by understanding exactly how much they require, before carefully considering whether you really have this to spare. It’s okay to take a look at your finances and decide that they’re not stable enough to offer assistance, but if you want to make the gesture, you may find that your friend or family member is incredibly grateful.
#3: Offer to Act as a Guarantor
Even if you’re not in a position to offer your loved one direct financial assistance, could you suggest that they apply for a loan and you act as their guarantor? Although such a measure will not resolve long-term indebtedness, it could be a solution if the problem requires a single cash injection to fix it, such as money to buy a new car where transport is necessary for the job that they do. If so, your involvement in making their loan application acceptable to a lender could really help them to get back on their feet, and would be a visible gesture of your continued support in their time of strife.
If you know someone who is struggling financially, and you’re looking for ways to help them out, could one of these suggestions work for you?