Like global crises, people also suffer from financial meltdowns triggered by a variety of reasons: unemployment, divorce, bankruptcy, medical emergencies, or any situation where stability is threatened. Whatever the cause, the consequences are usually similar: emotional stress, confusion, loss of control and confidence. For this reason, we are going to see the tricks to get out of this situation.
What is financial stress?
Nobody likes the feeling of being broke. It is a perpetual state of anxiety generated by living up to date and with bills and debts. This state of continual uncertainty about whether you have enough money to live on is known as financial stress or financial distress. It is a state of physical and emotional tension which, if not controlled over time, is detrimental to health. It is so serious that it also affects people’s work performance.
The reasons for a personal financial crisis
Lack of personal budget
The lack of personal budget is one of the causes that can lead you to experience economic difficulties. If you don’t clearly see the state of your finances and don’t know where your income is coming from, it complicates your decisions and leaves you vulnerable.
Having money that you don’t need to access a good or service isn’t necessarily bad when you’re sure you can cover the debt in a certain amount of time. The real problem comes when you don’t have the ability to pay and apply for loans to pay off the debt. In this case, you are facing a clear case of over-indebtedness.
Undoubtedly, job security is one of the most important foundations for any person, because employment not only gives meaning, but also enables future decisions, such as applying for a mortgage or investing in a financial product.
Achieving job stability not only benefits your emotional state and your financial situation. It is also an important variable that financial institutions consider when lending money. This is why periods of work stoppage in your financial history are a risk factor.
No emergency fund
Certain unpredictable events can affect your personal finances, such as a sudden accident, moving or unemployment. To face and reduce the uncertainty that this type of situation generates in your emotions and your pocket, you must have an emergency fund.
Financial difficulty: which loan to take out?
Not having the necessary funds is a real problem, especially if financial institutions refuse you a loan. Indeed, it is the surest solution to help someone in a difficult situation. You must therefore look for an accessible loan, easy to obtain and in record time.
THE mini loan in 4 installments is a financing solution for individuals and allows you to borrow a small amount of 100 to 1,500 euros. Its particularity is that it is repayable in 2 or 4 instalments. In addition, this consumer credit does not require any proof of income or use.
Even though the sum only covers some of your expenses, you can also use it as a fund to start your own little project.