Most people know that sinking feeling they get when thinking about their financial situation. In present day America especially, times are tough for most individuals.
It can be tempting to either ignore money worries altogether and hope they go away, which of course they don’t, or hand over your financial dealings to a financial adviser.
This is understandable, but is a financial adviser worth it, or do you simply spend more money and still have the same amount of stress? There are other ways to ease out of debt, including credit cards for bad credit and consolidating debts. Credit cards for bad credit should not be seen as a long term loan, as the interest rate will be high.
Firstly, be reassured that you are not alone. Due to the effects of the global economic recession of 2007, many everyday, middle-class Americans are struggling to keep financially stable.
In fact, it seems as a nation we are running very fast just to stand still, with unemployment rising, house prices stagnant and wage freezes commonplace.
In the midst of this gloomy picture are many individuals and households who are struggling to make ends meet. It is easy for money difficulties to spiral out of control very quickly.
If you are in this situation, there are various options. You can try and sort matters out yourself using investment tracking software, use one of the voluntary or charitable advice organizations, or hire a financial advisor.
Many people do not want to take the first option because the stress of negotiating with your creditors can be difficult and sometimes even looking at paperwork can feel terrible.
However, with some organization, you could look closely at your income and expenditure, create a budget, cut back where possible and communicate with creditors that you are being pro-active in repaying debts.
The charity and voluntary sector may be able to assist you with this and they do have many resources that you can access for free or a low fee. However, they are in demand and it may take time.
Or you could think about hiring a professional financial advisor. The first point to be aware of is the number of scams and dubious characters in this field.
To protect yourself from these types of situations, always approach a professional and reputable firm. Do not be taken in by cold callers or adverts that guarantee to resolve your issues but ask for an upfront fee.
Instead, the firm should have a physical address that you can visit and landlines, not just mobile numbers. They should be regulated by the Financial Industry Regulatory Authority (FINRA).
FINRA oversees and regulates the work of over 660,000 registered securities representatives, over 5,000 brokerage firms and over 170,000 individual branch offices.
Check that any financial advisor you may employ is registered with this body and has the appropriate qualifications to practice. You want someone to help you resolve your issues efficiently.
Using a financial advisor can take away some of the worry around money issues and for some people are a great solution. Do ensure that you do your research before handing over any of your precious money to anyone you employ professionally.