Five tools to cut the stress of managing money
It's National Stress Awareness Day, and for many, money can be a big cause of stress - but it doesn't always have to be.
From helping you work out your credit carddebts to making it to pay day, there are tools to help you get yourself sorted and begin to clear those worries away. Here are five big money stresses and the tools to help.
Stress 1: You'll never pay off your credit card
It can feel like you're hardly making a dent on your debt. That's because if you're only making the minimum payment each month, it really can take years and years to clear the balance and the interest that keeps building up.
How to avoid it?
If you try our Credit card calculator you'll be able to see what a difference it makes by increasing how much you can pay each month. It's always better to pay as much as you can afford.
TOOL: The Money Advice Service Credit card calculator
Stress 2: Christmas is going to be too expensive
Everyone wants to have a great Christmas. Not just for you, but for friends and family, especially if you have kids. But if presents, food and going out adds up to more than you have there are two options. You go without, or you get yourself into debt. And both can be pretty stressful.
How to avoid it?
With any big spend – from holidays to weddings to buying a home – it makes sense to plan as far in advance as you can. Christmas is no different, and it's the easiest to prepare for as you know exactly when it happens. Our Christmas money planner can help you do this.
TOOL: The Money Advice Service Christmas money planner
Stress 3: Your cash won't make it to the end of the month
There's three days until payday, and already you're skint. You've food to buy, it's your mum's birthday and your friends are all going out tomorrow. And there are new things happening every month.
How to avoid it?
In the short term you can probably find quick ways to cut back and find a few quid. That daily coffee or occasional taxi can quickly add up.
Longer term a budget planner tool will help you work out if there are different areas you can cut back on or reprioritise.
TOOL: The Money Advice Service Budget planner
Stress 4: I'm not going to have enough money when I'm old
When you're young, old age is the last thing on your mind, but as time goes on worrying about how you'll cope when you're retired can bring on a few premature grey hairs.
How to avoid it?
The first step is to find out what you're likely to have based on your current pension savings. Our pension calculator can estimate that for you. If it's lower than what you think you'd need, there's still time to put a plan in place – though that'll probably mean paying more in now.
TOOL: The Money Advice Service Pension calculator
Stress 5: I can't handle all the money I owe
If unpaid bills are piling up and your overdraft is maxed out, it can feel like there's nowhere to turn. The fees you're charged for missing payments or going into the red can add even more to the amount you owe, and pile yet more stress on you.
How to avoid it?
Don't try to deal with this alone. You can get free independent advice as a first step, and our tool can help you locate someone near to where you live. They'll be able to help you work out what you need to do and who you need to contact.
TOOL: The Money Advice Service Debt Advice Locator
This article is provided by the Money Advice Service.
