5 Things That Cause Financial Problems

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By Mark Metzler posted 10-21-2020 02:50 PM

  

Debt can easily spiral out of control, and with COVID-19, you may even have found yourself without a job and way over your budget. While most people are worried about different financial issues, there are some things that are causing people to become ill with worry. 

Policies and premiums

There are some people who have been paying for certain insurances such as life cover and now they can no longer pay. Putting food on the table is a top priority. They are too afraid to even find out what the possible consequences are as they’ve been contributing to some of them for a lifetime. 

There are some policies where, if you stop paying premiums, your coverage lapses. Some policies give you choices such as a cash-out policy where you can stop paying the premium and collect the cash savings that are available. True, you won’t be covered by life insurance anymore but you will at least save some of the proceeds of the policy. 

Fast loans to tide you over a bad period

The only way to get a quick loan is with payday loans. The best thing about these fast cash loans is that it's just business with them - they don't make you feel guilty like your family does that you’re asking for a helping hand. Cobra Payday Loans can be like the ultimate lifeline thrown to you. You can borrow from £100 – £5,000 and still have affordable repayments set up for you. 

Cobra works with the most reputable mainstream lenders and you benefit from some of the most competitive short terms loans there are. You can take up to 36 months to pay them back. And you can get approval for one of these loans in just minutes. 

By telling them about the type of loan you want, they use the information to match you to the appropriate lender. Payday loans from Cobra can be used for just about anything - towards medical needs, a holiday, funeral expenses - you name it. 

Car finance

Imagine your car being taken away from you because you can no longer afford the monthly payments. Without a car, life comes to a stop. Many people in the UK are struggling to pay their car finance due to reduced pay during Covid-19. 

With about 9 out of 10 new cars in Britain acquired using finance, the coronavirus has got many people concerned about holding onto their cars. The best advice you can get is to talk to your car finance company as soon as possible. 

There is just the chance they might offer to extend the cost of the contract. This could lower your monthly payments or they might come up with another arrangement.

Education

It can be a blow to your college-going kids to hear that they may have to drop out because you no longer have the funds to keep them in college. 

The whole future could come crashing down around them. It’s a leading cause of financial stress, and not only because of job loss, but because education has just become too expensive. 

Many parents receive some kind of financial help for their child to attend an independent school and this can include bursaries or scholarships. If you can’t pay fees, it may be better to seek the college or school’s advice.

A better lifestyle?

All of us are inclined to overspend sometimes, but some people can become feverish about not being able to keep up a lifestyle similar to that of their wealthy friends. 

Keeping up with the Joneses can become such an obsession that it can take people down the path to financial ruin. 

Their biggest fear is being recognized as needy and they will spend their last pennies on luxury items they don’t need just to keep up. Financial psychologists say this obsession is rooted in psychology and the terrible need to impress. 

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