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.
Alert: our top-rated cash back card now has 0% intro APR until 2025
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.
FAQs
What are Americans' main financial challenges? Over the past two years, more respondents cited inflation as the reason for their financial difficulties than any other cause. Inflation reached a 40-year high of 9.1% in June 2022 and has yet to return to the Fed's target of 2%.
How much of the American population is financially struggling? ›
More than half of Americans (58%) report being able to live within their means and not worry about making ends meet, while fewer than half (40%) feel they are in good or great financial shape, and one in four (23%) say they are in poor shape.
What percentage of Americans have $1000 in savings? ›
Key Takeaways. More than one in four Americans (28%) have savings below $1,000. This is the case for 32% of Gen Zers, followed by Millennials at 31%, Gen X at 27% and Baby Boomers at 20%.
What percentage of Americans don't have an emergency fund? ›
A new Empower study reveals more than 1 in 5 (21%) Americans have no emergency savings — money set aside for unexpected financial events such as job loss, home and car repairs, and medical bills. Nearly 2 in 5 (37%) couldn't afford an emergency expense over $400.
How are most Americans doing financially? ›
Currently, 72% of upper-income, 42% of middle-income and 25% of lower-income Americans rate their situation as excellent or good. Another question in the survey finds 62% of Americans saying they have enough money to live comfortably, similar to the 64% recorded last year but down from 2022 (67%) and 2021 (72%).
Are Americans falling behind on bills? ›
More Americans are falling behind on their credit card bills. About 8.9% of credit card balances fell into delinquency over the last year, according to the Federal Reserve Bank of New York — a sign that a growing number of borrowers are feeling the strain of rising prices and high interest rates.
How many people in the US 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.
How to live paycheck to paycheck? ›
Here is some advice that may help. Learn from others who successfully live paycheck-to-paycheck. Methods include aligning bill days more closely with paydays to minimize cash gaps, negotiating a reduction in healthcare bills, borrowing money from family or friends, or taking side jobs like yard work or childcare.
What are Americans cutting back on? ›
Over the last six months, nearly 80% of consumers have adjusted their spending patterns, cutting back on nonessential goods such as entertainment, home decor, clothing, and appliances.
What is the average nest egg in retirement? ›
The average retirement savings for all families is $333,940, according to the 2022 Survey of Consumer Finances. The median retirement savings for all families is $87,000.
Can I retire at 55 with £300k? On average for a comfortable retirement, an individual will spend £43,100 a year, whilst the average couple in retirement spends £59,000 a year. This means if you retire at 55 with £300k, an individual will run out of funds in approximately 7 years, and a couple in 5 years.
How much money does an average person have in their bank account? ›
The median savings account balance for all families in the U.S. was $8,000 in 2022. Generally, higher-income earners and older individuals save more than younger ones. Some experts suggest three to six months' living expenses as a goal.
How much does an average American have in a checking account? ›
Average checking account balance by income level
| Income percentage | Account balance |
|---|
| 60-79.9% | $7,924 |
| 80-89.9% | $13,434 |
| 90-100% | $43,631 |
| National average | $8,814 |
3 more rowsJun 17, 2024
In 2022, about 46% of households reported any savings in retirement accounts. Twenty-six percent had saved more than $100,000, and 9% had more than $500,000. These percentages were only somewhat higher for older people. Those ages 50 to 54 were the most likely to have a retirement account.
How much does the average middle class person have in savings? ›
The average American has $65,100 in savings — excluding retirement assets — according to Northwestern Mutual's 2023 Planning & Progress Study. That's a 5% increase over the $62,000 reported in 2022.
Why are we always struggling financially? ›
It may be that you have too much credit card debt, not enough income, or you overspend on unnecessary purchases when you feel stressed or anxious. Or perhaps, it's a combination of problems. Make a separate plan for each one.
What really caused the financial crisis in the United States? ›
The root cause was excessive mortgage lending to borrowers who normally would not qualify for a home loan, which greatly increased risk to the lender. Lenders were willing to take this risk, as they could simply package the loans into an instrument they sold, passing the risk on to investors.
Why Americans are in so much debt? ›
It began rising at a fast rate in the 1980's and was accelerated through events like the Iraq Wars and the 2008 Great Recession. Most recently, the debt made another big jump thanks to the pandemic with the federal government spending significantly more than it took in to keep the country running.
What is the wealth problem in the United States? ›
According to an analysis of Survey of Consumer Finances data from 2019 by the People's Policy Project, 79% of the country's wealth is owned by millionaires and billionaires. Also in 2019, PolitiFact reported that three people (less than the 400 reported in 2011) had more wealth than the bottom half of all Americans.
