How to Resolve Your Cash Flow Problems

When you have more money going out than coming in, you have a confirmed cash flow problem. While you may tap into instant access savings accounts to cover any difference in the short-term, unless you have a commanding amount of savings stashed away, they won’t last. The average person only has a few hundred saved up, so it won’t take long to get underwater again.

In this article, we examine how to resolve cash flow problems when you have them.

Use Your Savings, Initially

Before tapping other financing options, use your savings to bridge any immediate gap. This avoids you getting immediately behind on bills that charge interest when failing to make a minimum payment or clear the balance in full, depending on the situation.

Your savings disappear fast if you have a significant gap between income and outgoings. So, you’ll need to consider other ideas.

Try Freelance Work

When finding a better paid or full-time position might not be possible for you depending on your circumstances and how well the job market is going in your local area, there’s always freelancing.

Freelancing doesn’t require you to use an employment agency that takes time to get up to speed and put your information forward for job vacancies. It also makes it possible to earn a little extra money in the first week, if you move quickly.

It will be necessary to sign up for gigging websites like, create a profile, take some proficiency tests and then perform some initial tasks for a small amount to build up your online rating before you can raise your prices. So, any money is slow to come and won’t be much in the first few weeks.

Reduce Expenses

Reducing expenses is something that we should all do when we have too much going out versus what’s coming in.

The problem with being more frugal is that you can only cut so far. It begins to impact your lifestyle severely after you’ve cut 20% out of your expenses, which will be felt. It also won’t fully address the issue because the money gap could be wider with your spending cuts not finding enough savings.

Get a Loan

A loan provides a lump sum to use to cover any shortfall for a few months, at least, depending on the amount borrowed.

When looking for a loan, you want to find a lender, not a broker only. Quick loans tend to be for smaller amounts and over up to 12 months. They’re ideal for a need that arises without warning and may be a 6 to 12 month problem to handle.

Certainly, the fact that are direct UK lenders means they can offer good terms and have fewer delays in issuing new loans. Usually, approval and issuance happen within a day or so, which provides peace of mind.

When you have cash flow problems, it’s important to not wait to address it. The gap will not resolve itself on its own and the mounting financial difficulties will quickly become unmanageable when a solution isn’t found.

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