Where do you start when it comes to solving money problems?

So you’ve just been walloped by a massive tax bill, or perhaps you’ve discovered that your super account is far lower than you expected. Maybe you don’t know how you’re going to make next month’s mortgage repayment, or far worse? Read on for the steps to take when you need to solve a big money issue.

Step 1: Know what you’re dealing with.

Sometimes it can be frightening to actually know the depth of the problem, but before we can come up with any possible solutions, we need an actual handle on the situation.

Opening up your credit card bills and tallying up the debt (as well as the most urgent payment, and when it’s due) can free your mind up to start brainstorming a solution. Commit the problem to paper so it’s out of the ‘darkness’ of your mind.

Step 2: Brainstorm steps you can take to resolve it

Work backwards from the resolution. So, for example, if you need to make next month’s mortgage repayment and your business partner has just escaped with all your readily-available cash, list all your possible resources on a sheet of paper. Could you borrow money from your partner, or sell an asset, or are you waiting on a tax return that may arrive any day now – can chase that up…?

Identify the consequences involved in each option and weigh up their pros and cons to come up with a plan of action.

Step 3: Take action

Whether it’s making three phone calls to alert your bank or financial institution that you’re struggling, or seeking expert advice in a more serious issue such as fraud, don’t delay taking action. There’s a saying that “if something can be solved by action, it’s not a problem.” Taking action stops the worry, too. Whether it’s pouring your change jar out and putting that sum of money on your credit card as a first payment to shopping around to refinance your mortgage, little actions taken quickly can be very empowering.

There are free financial and legal aid services in every state of Australia. Spend some time researching the support you can call on and seek their advice. Tackle the problem head on and you may be surprised at how quickly you come up with a solution.

Want to know more about solving money problems, and accessing tools and tricks with debt and financial planning that you may not be aware of? You have access to a wide range of educational resources at your fingertips. What you learn in a half-hour could teach you valuable money-saving tools and tricks for a lifetime.

General advice disclaimer

The information contained in this document is provided for education purposes only. It has been prepared without taking into account your particular financial needs, circumstances or objectives. You should consider the appropriateness of the information as it relates to you. You may wish to consult an adviser before you make any decisions relating to your financial affairs.