Most of us would love to have more money, but there’s a big difference between dreaming about yachts and exotic getaways and lying awake in the early hours worrying about debt and unpaid bills. If your finances have taken an unexpected hit or you’re concerned about debt, you’re not alone. A recent survey by Virgin Money revealed that 88% of Brits experience sleep troubles due to money worries. In this guide, we’ll share some actionable tips to help you improve your financial situation and ease financial stress. #
Assess your individual situation
This is often the hardest part but arguably the most important. Before you draw up an action plan to tackle money issues, it’s important to know what you’re dealing with. Start by checking your account balances and calculating unpaid or outstanding debts. Check credit and store card statements, analyse your current account transactions and see how much money you’ve got in savings accounts. Note down figures and write a list of creditors if you have any debts.
Understand that help is available
Most people have debts, but there are different types of debts. If you have a mortgage or credit cards and loans, you’re on time with repayments and the balance is reducing or remaining stable, there’s usually nothing to worry about. If your balances are increasing or you’ve become more reliant on credit, this is a warning sign. It’s also important to take action if you can’t pay bills or make repayments. If you’re at this point, it’s crucial to understand that help is available. Experts like Alex Kleyner, from National Debt Relief, encourage people to reach out as early as possible and start working towards a debt-free future. With help and guidance, it is possible to lower repayments, consolidate debts and avoid borrowing more money. A simple conversation and a compassionate ear can make a big difference.
Manage debts effectively
It’s beneficial to categorise debts according to interest rates and repayment or payment deadlines. Managing debts effectively can help you avoid penalties, protect your credit rating, reduce stress and lower your total debt burden. Financial advisers and debt charities can help you figure out a repayment plan based on your individual circumstances.
Adjust your spending habits
It’s simultaneously easy and difficult to manage money in 2025. We live in a paradoxical land where we can micro-manage spending while parting with money with wild abandon. Online banking and notifications make it simple to track spending, but it’s also too easy to spend when you can order products and make payments at the touch of a button or the tap of a card.
The first thing to do when financial stresses start to take their toll is to adjust your spending habits. Monitor your accounts, set budgets and limits, and make cuts where possible. Start with non-essentials and luxuries. You may be surprised at how much you spend on takeaways, clothes, subscriptions you never use and on-the-go lunches, for example. Being more diligent can help you lower spending dramatically.
