November 13, 2023 8:23 pm

When the basics don’t work

Struggles and solutions – money, debt and addiction

A little more personal this time around. I last week held a webinar where one of the delegates bravely shared that she’s struggling to stay afloat.

Yes, she’s budgeting, reviewing bank statements, slashing spending … she even has a side hustle. But sometimes, sadly, it just isn’t enough.

Many of us, especially right now, are having money troubles and the turmoil may be down to forces outside our control. Controlling one’s own actions and behaviour is all well and good, but people, systems and events rarely dance to our tune.

Financial advisers, commentators and folks with a bit of profile can be guilty of pushing solutions like they’re easy. Just get the basics right, we’ll say, and the rest’ll fall into place.

Unfortunately it’s not always so. Sometimes help is required.

The basics only work when they work

Financial advisers often present a fairly simplistic, binary catch-all to people struggling with money: increase your income or decrease your overheads.

In principle it’s not wrong, but the practicalities of either can be near-impossible. Right now especially. More and more people are falling into the financial dangerzone and it was recently said that UK poverty levels are so low they’re an affront to human rights.

There are plenty of numbers to underpin the dire the state of play but you don’t need us regurgitating headlines, news and stats when you’ve got eyes and ears.

This year has seen more volatile inflation, interest hikes and cost pressures. While the jobs market and wage inflation have been more positive, there’s a dotted line separating those who have the time, mobility, connections, skills and experience to explore new opportunities from those who haven’t.

Making more or spending less only works if it works.

Struggling with money …

Much of this is taken from The Money Means Book, and we always recommend The Money Charity as a good source of info too.

Struggling to provide for your own and / or your family’s basic needs can be a desperate, bleak and seemingly hopeless place to be but help is available.

Please go here for info on Universal Credit, housing and other state benefits and here for info on emergency food banks, but do note that this may require a professional referral.

Keep your eyes on local community noticeboards to find schemes and charities that may be able to support your circumstances. Engage your local council and Citizens Advice Bureau too, they’re solid places to start.

Never be afraid to ask for help. Loudly. Also, make full use of any services, moneys or facilities open to you. As much as media likes to debate it, we live in a society of safety nets. We depend on each other – and that’s okay.

Or debt …

An obvious consequence of money struggles is debt. Many of us have been there.

Debt can sneak up. You may have decent money nous, good intentions and the gift of foresight but one unforeseen bill, or chaotic event or just the inertia of cutting it too fine for too long can trigger a situation that begins to look impossible.

Nothing is. Should you find yourself in debt, numerous services exist to help you get a handle on it.

For starters, banks, lenders and financial service providers have a duty of care, now more than ever, to help customers who are struggling. Payment holidays, crisis loans, restructuring plans and support services are part of banks’ remit, and accessing most such services shouldn’t mess with your credit rating.

Have that conversation.

We mentioned Citizens Advice above, and they’re a good go-to, as are debt charities and counselling services. Start with StepChange – they offer practical help and support.

All in all, it’s super important you speak up and don’t struggle alone.

Or addiction …

We said above that an obvious consequence of money struggles is debt. But yet another is somehow even darker, and that’s addiction.

We know too well that gambling and high-stakes investment ads exploit people in precarious situations, and it can be easy to get sucked in; thinking you’re just one big score away from your dreams coming true. Fact is, the house always wins.

We’re not here to define the disease of addiction, PhDs and experts the world over still debate its minutia. That said, if you realise or suspect you have a problem (and that’s a bigif given addiction is a disease which repeatedly tells you you haven’t got it) then please check out GamCare, GambleAware, and GamStop.

If a financial situation has pushed you or someone you know towards alcohol and / or drugs then consult a doctor or your employer for support. Know, too, that Community Addictions Teams are most likely in operation nearby. Anonymity can be key in such scenarios, so try to ensure that those you engage will act with discretion.

Lastly, if you have financial products, primarily life insurance, then it’s also worth checking what value-added-benefits come with the package. Fairly often, free medical and counselling services are smuggled into the small print.

Or general financial skills

Last on this somewhat dreary list is financial advisers. We’re in place to help you raise your money game, actions and attitudes more generally towards (a new) optimum.

If you suspect you’re not in full control of your money, or just want to learn new techniques, we’ve got you covered.

Okay. Well, it’s tough to know how to bow out of this email. Sometimes reality just sucks. The words this too shall pass are important to hold onto, and if you’re in a solid financial position compared to someone close by then please consider lending a hand or an ear.

The latter is vital. When it comes to debt, addiction and money woes, silence is a killer.

People struggling need to know there’s help out there, so whether it’s you or someone you love, please seek that help. Use what’s on offer and let us know how you go.

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