Managing money depends on many factors in a person’s life. Everyone’s income, spending patterns, needs, and mindset are unique. There’s one thing in common, though: money management is something anyone can learn. Often, being okay with asking for financial support and guidance can help you get on track faster. Yet, when struggling, people often hesitate to reach out for advice. Here, we break down why people wait too long to ask, and how to overcome the hesitation to do so. Plus, some tips on where and how to start your journey.
Why do people wait too long to ask for financial support?
Money can be a difficult topic for many, fraught with emotion for various reasons. Some of the major reasons people are hesitant to ask for support are:
Money often feels private and emotional
It feels like a personal matter, which people feel they have to figure out and handle on their own. People may already be feeling overwhelmed and unable to manage their debt or bills. They might have feelings of shame or judgment, sometimes even denial. This gives an added emotional layer to why someone may be hesitant to reach out. They may not want to hear “bad with money” or be judged for their financial missteps.
Denial and/or optimism bias
Some people are in denial about their financial issues, or may have optimism bias. They’re thinking they will catch up with their bills with the next paycheque/bonus/tax refund. This can be especially difficult to accept if they’re managing to make minimum payments or are “on top of things.” This creates a false sense of security and keeps them in the “next paycheque things will be better” cycle. A good first step in this situation is checking your cash flow and seeing where your money’s going. Then consider whether the next paycheque will actually solve things.
Feeling overwhelmed
When people feel overwhelmed, decision fatigue tends to creep in. It’s difficult to manage regular day-to-day matters. Then, anything that feels like a big decision gets pushed to “later.” This makes it harder to even take the first step. This is because even figuring out a first step requires some level of decision-making, which can feel too hard to do when there are other fires to put out.
Not knowing the kind of help that’s available
People may just not know the kind of options that might suit them. Their mind may make them jump to the worst-case scenario, like bankruptcy, right away. This creates a lot of fear. This fear makes them avoid asking for professional help or looking for other solutions that are less severe and, often, more suitable.
How to overcome hesitation to ask for financial support?
The first and most important thing: reframe what help can look like. Most people weren’t taught how to manage debt, credit, or money in general. It’s not something that comes naturally. People are either taught or learn on their own through research and asking for guidance. Talking to an expert is part of the process, like taking your car troubles to a mechanic. It makes sense to go to an expert, and you can always go get a second opinion!
Take it one step at a time. You don’t have to make all the decisions today; the first step can be as simple as doing some research. Find resources online, learn your options, find guides, or book a free call with a nonprofit. Don’t worry if the research part seems to take a lot of time. Depending on your current financial knowledge, research can take some time. It’s all a part of the process, so go easy on yourself. After doing some research, you will get more comfortable and find yourself gravitating towards certain options.
Another thing that can inspire action is to compare the fear of starting vs the cost of waiting. Not making a choice is also a choice. Interest payments, fees, and stress can all pile up with inaction. It’s better in the long run to address the root cause of your financial stress. Normalize the experience – it’s very common for people to need help. You’re not alone, and you’re not “behind”.
Signs you should seek financial help
If any of these points apply to you, it might be time to seek help sooner rather than later:
- Often using credit cards, payday loans, or buy now pay later to cover essentials like groceries, gas, bills, or utilities.
- Only making minimum payments for months. Credit card balances aren’t going down or, even more worrisome, growing over time.
- Often paying late fees, overdrafts, or using one credit card to pay another.
- Avoiding money tasks or decisions. Like not opening bills, avoiding creditor calls, or panicking about checking your balance.
- Money worries are spilling into other areas of your life. It can affect mood, relationships, work, or sleep.
Types of financial support available
- If you’re confused about money basics, you can opt for educational resources or look up financial literacy programs. These can provide knowledge, tools, and strategies to help you manage your finances.
- If you’re facing manageable but growing debt, look into credit counselling and learn how to set up a budget.
- If your debt feels unpayable: Look into debt relief programs, consider legal options.
- If your income feels too low, look into government benefits and social assistance programs. These can provide cash support, subsidies, and more.
- If you’re feeling high anxiety, stress, or burnout, consider mental health services to develop coping skills.
What happens if you wait too long to ask for financial support?
Financial cost. Interest payments, late fees, and balances go up. This can damage your credit score, which makes future borrowing more expensive.
Fewer options: The earlier you take action, the more options you can qualify for. If your financial situation gets worse, you have fewer choices available to you. If it gets severe, you may end up having to opt for bankruptcy.
Health and relationships affected: Money stress, anxiety, and conflict can intensify the longer you wait.
Key takeaways
Asking for financial support can seem overwhelming. Sometimes, money feels like something you need to figure out on your own. You don’t. There are different support options, resources, and guidance available to you. All you need to do first is take that first step of research. Give yourself time to really understand your options. An expert can help you navigate these options, or may even be able to suggest a suitable path you weren’t aware of! Just like taking a car to a mechanic, or health troubles to a doctor, there’s no shame in asking for financial help. If you’re currently dealing with debt, you can contact one of our trained credit counsellors for advice – they can help you figure out which debt relief strategy could be the right fit for your specific situation.
