Financial troubles and debt can cause tremendous stress. If it’s a family member who is going through this, it can be especially hard to see them struggle. The situation can be tricky as well because most people do not like to talk about their money problems.
Given the sensitivity of the matter, you may not know how to talk to them about their money problems. People may get emotional and consider your concern as an encroachment of their privacy. At the same time, you must protect yourself, and not get over-involved in their problems.
Here are a few options that you can explore to help your loved ones without hurting their sentiments.
Recognise The Reasons For Their Financial Troubles
Before your jump to any conclusion, identify the reasons for their financial troubles. This step will prevent you from making any emotional decisions.
Was it due to an unavoidable situation like the death of an earning member, divorce, or loss of a job? Was it the outcome of a behavioural or habitual pattern? In case it happened due to a pervasive issue, you may want to offer help after knowing how they are going to deal with it in the future.
Once you have analysed the issue, you will be in a better position to make the right choice. If you want to offer help, you can move on the next steps.
Be Supportive And Positive
Familial bonds are strong yet sensitive. Approaching your troubled relative and offering money straight away may hurt the person’s self-esteem. It is natural for you to panic initially, but the goal should be to extend your support.
The family member could be in this situation for some time before you come to know about it. They may not be comfortable answering too many questions or drilling into how it happened. Instead, they will appreciate it if you could listen to their woes.
Reassure them with positive words; let them know you are there for them, and everything will fall into place. Also, remember that it may take some effort for the person to open up and speak freely about the situation.
Offer To Help With Expenses
Once you have decided to help the person, you need to work out a plan. If you are financially well-off and the situation is for a short-term, you may go ahead and provide some credit uk to your relative. Depending on your position, you can either decide to give all at once or in short periods.
For instance, you can repay the credit card, grocery or gas bills. It will be a surprise that could make their day. However, make it clear that it is a gift, and they need not worry about paying it back.
Your relative may approach you for a loan. In such situations, it is advisable to be as practical as possible. Don’t get swayed by your emotions and carefully evaluate the amount that you can afford to give them without risking your financial wellbeing.
It is always better to be honest in such situations. For instance, tell them that you have your financial obligations and cannot offer a higher sum.
Similarly, when you do offer help, talk about the repayment plan and set a time limit. If there is no rush, communicate that as well so that they can concentrate on other problems.
Sometimes, people land into debt because they are not good at managing their money. A relative who has just started earning could be spending more than the income. The credit card bill could have spiralled them into this situation.
In such circumstances, it may be more helpful to offer your advice and financial wisdom. You can teach them how to budget their expenses and manage their money more economically. At times, people need to adjust their lifestyle choices and control their spending to keep their financial troubles away.
If possible, get their credit history reports and explain the importance of a good credit score. Once they understand how their money behaviour can impact their future resources, they will come around faster.
Do you think that a job is the only way to help your relative? It could be because you are not comfortable with the idea of a gift or a loan. Perhaps you want to instil the feelings of responsibility and independence.
There is nothing better than offering a job in these circumstances. You can put in a reference for your relative or polish their CV and help them sift through the classifieds. Alternatively, you can ask the relative to help you with house chores for some money in return.
Apply For A Loan
Is your loved-one keen on handling the crisis by themselves? If yes, you can tell them about personal loans which can be availed to resolve any short-term problems.
If they do not have a good credit score, you can ask them to get no credit check payday loans. These are short-term loans that do not require any credit history. You can help your loved one with the interest if it gets too much for them.
For a sibling or a parent, you can even consider co-signing a loan. However, you will be legally bound to repay the loan if the borrower defaults on the payments. It is advisable to be cautious before you go ahead with it and evaluate all the other options.
Do Not Criticise
Lastly, remember that it is an unfortunate time for the person who is in debt. It is important to be encouraging instead of overtly criticising your relative.
It is equally crucial to not ignore the problem and brush it under the carpet. Talk to them before the debt spirals out of control. At the same time, if you are offering help, ensure that they do not become dependent on you.
Debt and money problems can come to anyone and at times, without any warning. It may be tough to see a relative go through the pain, but you can use the information shared above to help them swim out of it.