At Better with Money, we have the experience to know that coping with debt can be incredibly stressful and upsetting. Many people confide feelings of exhaustion and a pervading fear brought about by the uncertainty of their future.
Something that began as almost nothing can rapidly spiral until it becomes a case of being afraid that they won’t have the money to MOT their car next week, or the ability to pay off what they owe and save their home from being repossessed.
You will surely sympathise with any staff members who are struggling through this, and although you may not be able to offer financial assistance, there are things you can do to make a difference. Here are three simple steps that could help those affected to get on top of things.
- Help them to face the facts
If a team member comes to you in your capacity as an employer or member of the HR faculty in your workplace, one of the most practical steps that you can take to help them is to determine the extent of their financial issues. Ensure that they can come to you with worrying documents, such as bank statements, credit card bills, or other paperwork, and if they need to, that they can open these in a supportive environment.
If you can, get them to make a list detailing exactly how much they owe and to whom, including rates of interest, and then put them in touch with a relevant debt charity. This body should be able to provide them with both advice and support so that they can take the right steps towards debt resolution.
- Have them create a budget
We would also encourage you to help them create a budget. Although you may not be a financial expert yourself, this is very simple to do. Have them start by listing their monthly income in one box, and their unavoidable monthly expenses – such as their rent, car insurance, food, tax, and petrol – in another. Minus the latter from the former and this should give them a rough idea of how much they can afford to repay each month. With the help of the Money Advice Service, Citizens Advice Bureau or Money Saving Expert, they can use this information to devise a repayment plan and get on top of the problem.
- Prevention is better than cure
Thirdly and finally, we recommend educating your employees. This can not only help to prevent members of your team from repeating their mistakes but can also ensure that most of them need never suffer from debt to begin with. Enterprises like ours are ideally suited to delivering this information through our financial workshops. These can be specifically tailored to different income levels and situations to give your workers the tools they need to stay debt free.
Make a difference today by following these three simple steps.