If you are facing financial stress right now, you are not alone. According to a recent Ramsey Solutions study, 34% of survey respondents indicated that they were either facing financial struggles or were actively in crisis. That's a huge percentage of people -- more than one-third of all respondents -- who are not feeling good about their personal finances.
If you are one of those people, there are some options out there that could help you to get a better sense of control and get into a better place with your money. Here are some steps that you can take to try to get back on track.
Take advantage of the help that's available
If you are in the midst of a financial crisis, you may need some help to get out of it. And there's absolutely nothing wrong with that, as plenty of state and federal programs were created for just that reason.
Depending on your situation, you may be eligible to get help paying for food, housing, or medical insurance. You can use the Benefit Finder on USA.gov. Don't forget to check with your state's Social Service agency to explore programs available to you. Many of these programs are means-tested, so be prepared with paperwork like pay stubs or tax returns when you're trying to figure out what to qualify for.
Taking advantage of this assistance -- even on a temporary basis -- may give you the breathing room to make long-term positive changes that leave you with more money in your bank account.
Do something about your debt
If you are struggling, there's a good chance you have debt that's making your situation worse. After all, if you've committed future income to cover yesterday's expenses, it's going to be harder to make ends meet.
When you're in this situation, look into whether you can lower monthly payments and total repayment costs. Refinancing using a personal loan may be a good option if you have high-interest debt. This would involve getting a personal loan at a lower rate and using it to pay off existing creditors. Using a credit card balance transfer could be another option, as you can transfer the balance from current cards to a new card at 0% interest so you can make better progress on repayment. Note that you will need to have a fairly strong credit score to qualify for these options. And you should have a plan for repaying the debt while the 0% rate applies, as it will only be temporary.
You can also talk with your lenders about what they may be able to do for you, especially if you worry you won't be able to pay the bills. Often, they'll be willing to work out a payment plan for you if they fear not getting paid at all. You may want to ask, however, if the plan they work out will have an impact on your credit score. You may move forward with doing it anyway, but be aware this could make things harder in the long run if you hurt your credit.
Increase your income
Finding a way to earn a little more could go a very long way toward reducing your financial worries. And there are a ton of side gigs out there you could try out. The average earnings from side hustles come in at $483 per month, which is a good amount of money you could use to try to catch up on bills or pay down debt so you can eliminate some of your monthly obligations.
Think about what you're interested in and where your talents are. Could you walk dogs or baby sit or drive for a ride-hailing service or provide tutoring? There are apps and websites aplenty where you can connect with people that may be interested in hiring you for these tasks.
Reduce your fixed spending
Finally, you could try to reduce one of your fixed costs. This is a big, ongoing cost that you can take action once to reduce and that will make a long-term positive impact. For example, you could sell your expensive car (with the high car payment) and opt for a cheaper one and pocket the extra cash.
Making one big lifestyle shift like this can be a lot less stressful and a lot easier to maintain, so it could really help your financial struggles to lessen.
By taking any or all of these steps, perhaps you can get some financial relief so you can move out of the personal finance crisis and stress phase and start making solid progress toward a brighter future.
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FAQs
80% of Americans Are Still Struggling Financially 4 Years After COVID-19.
What percent of Americans are struggling financially? ›
80% of Americans Are Still Struggling Financially 4 Years After COVID-19.
How are most Americans doing financially? ›
Key Findings. 48.6% of Americans consider themselves to be “broke,” and 66.2% feel they are “living paycheck to paycheck.” There is a gender gap in the results: Females are more likely to consider themselves “broke” at 55.8%, compared to males at 41.1%.
Are Americans struggling to pay bills? ›
According to the 2024 Financial Literacy Survey by GOBankingRates, 13% of Americans do not currently bring in enough money to cover their bills, and 46% barely bring in enough to cover their bills.
What percent of Americans live paycheck to paycheck? ›
How Many Americans Are Living Paycheck to Paycheck? A 2023 survey conducted by Payroll.org highlighted that 78% of Americans live paycheck to paycheck, a 6% increase from the previous year. In other words, more than three-quarters of Americans struggle to save or invest after paying for their monthly expenses.
What is living paycheck to paycheck? ›
"Paycheck to paycheck" is an informal expression describing someone's inability to pay for living expenses if they lost their income. People living paycheck to paycheck are sometimes referred to as the working poor. Living paycheck to paycheck can occur at all different income levels.
Why is no one spending money right now? ›
Feelings of judgement are a factor for most, with more than half (57%) saying they sometimes judge themselves based on their money or lack of money, and half (50%) sometimes feel judged by others. A large majority (84%) want to be more intentional and thoughtful about their spending than they are right now.
How many Americans don't have enough savings? ›
As of May 2023, more than 1 in 5 Americans have no emergency savings. Nearly one in three (30 percent) people in 2023 had some emergency savings, but not enough to cover three months of expenses. This is up from 27 percent of people in 2022. Note: Not all percentages total 100 due to rounding.
What is the average net worth of a household? ›
Average Net Worth of an American Family
Both median and average family net worth surged between 2019 and 2022, according to the U.S. Federal Reserve. Average net worth increased by 23% to $1,063,700, the Fed reported in October 2023, the most recent year it published the data.
What is the average credit card debt in the US? ›
Overall, the national average card debt among cardholders with unpaid balances in the fourth quarter of 2023 was $6,864, down from $6,993 in the third quarter. That includes debt from bank cards and retail credit cards.
Under current policy, the United States has about 20 years for corrective action after which no amount of future tax increases or spending cuts could avoid the government defaulting on its debt whether explicitly or implicitly (i.e., debt monetization producing significant inflation).
Are most Americans living in debt? ›
The Federal Reserve tracks the nation's household debt payments as a percentage of disposable income. The most recent debt payment-to-income ratio, from the fourth quarter of 2023, is 9.8%. That means the average American spends nearly 10% of their monthly income on debt payments.
What if everyone stopped spending money? ›
The nature of our global economy is such that people's income derives from other people's spending. So when shopping stops, the economy stalls. There's less demand, and that means less work to do.
What do people spend the most money on in the US? ›
Overall, housing accounted for the largest share (33.3 percent), followed by transportation (16.8 percent), food (12.8 percent), personal insurance and pensions (12.0 percent), and healthcare (8.0 percent). Each of the remaining categories contributed less than 5.0 percent of total expenditures.
What does the rule of 72 tell you? ›
The Rule of 72 is a calculation that estimates the number of years it takes to double your money at a specified rate of return. If, for example, your account earns 4 percent, divide 72 by 4 to get the number of years it will take for your money to double. In this case, 18 years.
How many people are financially underserved in the US? ›
More than 45 Million Americans are Either Credit Unserved or Underserved; Approximately 20% Migrate to Being Credit Active Every Two Years.
What percent of Americans are financially free? ›
SAN MATEO, Calif., Aug. 22, 2023 /PRNewswire/ -- Despite most Americans having modest expectations of what it means to attain financial freedom, just 1-in-10 (11%) report they are living their definition of financial freedom, according to a new survey by Achieve, the leader in digital personal finance.
What percentage of Americans suffer from debt? ›
Even though household net worth is on the rise in America (at $156 trillion at the end of 2023)—so is debt. The total personal debt in the U.S. is at an all-time high of $17.5 trillion. The average American debt (per U.S. adult) is $66,772, and 77% of American households have at least some type of debt.
Are 77% of Americans anxious about their financial situation? ›
Roughly 77% of Americans are anxious about their personal finances4, and 58% feel that their personal finances are controlling their life4. These feelings of financial stress are not new.
