Covid is putting a strain on people’s finances as well as their mental health.
During my 30 years as a Pastor I have chosen not to draw a salary from the church but have supported my family by running a financial planning business. Here are some strategies I have proven work in helping people get on top of debt.
1. If you are sinking, plug the leaks. You need to know accurately where your money is going. A two cup a day of coffee from the cafe is $7 a day. That is $1750 a year. Drink instant if you need to. Do you “need” cable tv?
2. Pay the smallest debt first. It will encourage you to tackle the big ones.
3. Talk to the bank. The biggest mistake people make when they are in debt is to ignore the bank. If you ignore them they will quickly go down the legal path. Banks are realistic. 70% of something is better than 100% of nothing. Approach them and ask for some debt forgiveness, reduced interest rate or repayment plan that you can live with. You’ll be amazed at how generous they can be, but you have to ask. They will never volunteer this.
4. Increase your income. Time poor people will pay others to walk their dogs, do their ironing etc etc.
5. Get overtime, second job etc. Remember you don’t get paid for the hour, you get paid for the value you bring to the hour. Be valuable.
I hope this encourages and helps you.