Financial support is out there. From government programs that provide cash support to charities that offer food and shelter, and non-profit organizations that provide financial education, there is a lot of help available for those struggling. Even so, many of them hesitate to reach out. When they do get the courage to reach out, waiting usually means debt has grown, savings have dried up, and deadlines loom large, or have even passed by. Making it that much harder to get a handle on their finances. All of this begs the question, why do we wait to get help?
We’re shedding light on why people hesitate to get support, with the hope of offering solace and awareness. Solace for those struggling so that they understand they’re not alone and have nothing to be ashamed of. Awareness so that we all know where, when, and why to seek out support, ideally early.
Why people hesitate to get help
While the reasoning behind why someone would hold off getting help is nuanced, there are three that come up most frequently.
Things will turn around
Some people lean on the idea that their financial circumstances are temporary or not bad enough to warrant seeking help. They believe that they’re just facing a setback and that they’ll get things sorted out once circumstances change. This is a common experience for those who, until the setback, have been experiencing a pretty stable financial footing. They may have even succumbed to lifestyle creep. The previous stable footing lures them into a sense of comfort that leads them to delay taking action.
Feeling ashamed or incompetent
There’s a common misconception that everyone knows how to manage money. Or that it comes naturally for everyone. This can lead those people struggling with money to falsely believe that they should already know how to manage money. The fact that they are struggling with something they think they should know how to do leaves them feeling ashamed or inadequate. These feelings don’t exactly inspire a mindset that is eager to look for help.
Don’t know where to look
This reason simply comes down to a knowledge gap. In these cases, the person experiencing financial hardship may want to get help, but just doesn’t know where to get it. They may not even know to look for help because they don’t know that there are places to go for support.
The realities of waiting
Our “humanness” can sometimes make us believe that not taking action means maintaining the status quo. When in fact, not taking action is an action in and of itself. This is especially important to be aware of when it comes to things like finances.
Bills don’t take non-action into account. They will still manage to find their way to you. Along with regular bill payments, interest charges and penalty fees will add to the issue. Missed payments also impact credit scores. This complicates things even further because the lower a credit score, the fewer options available to get finances back under control. It also means it’ll cost more to get access to much-needed funds because lower interest rates will be out of reach.
Another, financially unrelated consequence of delaying getting support is poor health. It’s been well documented that the stress of financial hardship can lead to health concerns like high blood pressure, insomnia, and mental health issues.
What this all boils down to is this: the earlier someone reaches out for financial support, the more options there are available to them. Get support early enough, and keeping a solid financial footing may simply mean adjusting a few spending habits for a while and making a few phone calls to your creditors.
Overcoming the temptation to delay getting help
Awareness can go a long way to help people step over that first hurdle to get financial support. The hope is that bringing to light information like the cost of waiting and how beneficial it is to take action early will help many of those facing financial hardship seek out support.
For those needing a little more courage, please know that you are not alone. A recent survey revealed that many Canadians are just $200 away from not being able to pay their essentials. Financial literacy is not an innate skill. It’s something learned. With the right help, you can learn to manage your money and be free from financial stress, too. Please don’t let shame stop you from getting support.
For those ready to move forward, take things one step at a time. Taking on more than you can chew comfortably at once can spin people into overwhelm. Overwhelm is not a conducive mindset to learning and achieving. Small, frequent bites will get you much further. The less stress and the more success you achieve, the more likely you’ll stick with it.
Early signs to seek out financial support
Knowing to get help early is only useful if you know what “early” means. Below are some of the most common signs of early financial strain. They’ve been broken into two groups, yellow and red. Though less concerning than red, yellow signs are still clear indicators that it would be good to seek out financial support. Remember, the sooner you take action to get back on track, the more options you’ll have at your disposal and the quicker things can be turned around.
Yellow warning signs
- Only making minimum payments on your debt.
- Forgoing important maintenance on things like your house or car.
- Taking money out of your long-term savings to help stay afloat.
- No money buffer, like an emergency fund or sinking fund.
- Avoiding financial tasks and decisions like budgeting and opening bills.
Red warning signs
- Taking on debt to get by.
- Not being able to cover the basics.
- Getting collection calls.
- Missing bill payments.
- Legal action, such as wage garnishment.
Where to find help
For those ready to take action, here are some places you can go to get help.
Government of Canada
The Government of Canada not only has an abundance of places to get financial support, the website also has lots of great financial literacy information.
Financial institutions
Financial institutions are a great resource to go to for support. If they don’t have a service to help themselves, they’re highly likely to know where you can go to get the help you need.
Charitable organizations
The country is full of charitable organizations like food banks, clothing donors, and low-cost housing builders. While these organizations don’t necessarily help with cash, their services can ease cash flow so you can get back on your feet quicker.
Creditors
A bit of an unexpected place to go for financial support is your creditors. Most creditors do have programs to help those facing times of financial hardship. For example, many hydro companies across Canada offer low-income subsidies. Credit card companies will offer deferrals, payment rescheduling, or interest relief. In the end, these companies would much rather get something instead of nothing.
Specialty financial organizations
Other financial organizations, like independent financial advisors, credit counsellors, and tax experts, are all also great sources to tap into. They all offer a combination of financial services and education.
The internet
The internet is also a great resource to find these supports. You’ll also find an abundance of low-to-no-cost financial literacy material and financial professionals when you need a little more guidance. Just be careful about what sites you get your information from. You’ll want to be sure it’s a reliable source that has the knowledge and expertise to back up what they’re saying. Look for credentials like:
- Certified Financial Counsellor
- Certified Financial Planner
- Chartered Professional Accountant
- Chartered Investment Manager
- Personal Financial Planner
Wrap up
Financial struggle has a knack for luring people with a wait-and-see strategy. Hoping the issues will just all disappear. This strategy brings with it a hefty list of (what can be) long-term ramifications. Financial hardship doesn’t have a pause button. That’s why it’s important to seek out financial support early, ideally, when you’re in prevention mode rather than crisis mode.
If debt is the root of your financial struggles, our trained Credit Counsellors can help. Give us a call for a free, no-obligation consultation. After assessing your financial situation, they will make an informed recommendation on how to tackle your debt and get your finances back in control.
