Regardless of how well you’ve planned and prepared for the bumps in the road, there are times when financial emergencies seem overwhelming. However, there are techniques which can be employed to help make these difficult times a little less chaotic.
Sit Down, and Think
The very first step to take when you find yourself in a financial crisis is to turn off the panic button, sit down, and think through the situation. It could be that upon reflection things aren’t quite as bad as they seem. To the contrary, after you’ve mulled the situation over, it could be every bit as bad as you thought. Regardless, panicking will not help improve your circumstances while a well-thought out plan will.
Put Your Financial Ducks in a Row
Once you’ve calmed down, it’s time to prioritize your finances so that the most important bills are getting paid first. Always make sure to pay the mortgage or rent, utilities, and insurance before anything else. If there isn’t enough money to go to cable, credit cards, and other miscellaneous creditors, at least your home and immediate needs aren’t at risk.
Also, it isn’t a bad idea to evaluate the bills that you are paying out and eliminate what you can. Does your family really need four high end cell phones and a home phone? Don’t confuse wanting with needing. You need to be financially stable while you may want to keep up with the Jones’.
Call Your Creditors
Often, people wait until they are severely behind in their bills to contact a creditor. That is the absolute worst thing to do. Lenders benefit when you pay your bills, and they are far more likely to help you reach a payment level that you can afford before you are delinquent. Simply call when you see that your finances are coming up short, and ask what options are open to you to relieve some of your financial burden.
Open Your Eyes to Extra Cash
You’ve got cash all over your home, and you don’t even know it. So often, the obvious is overlooked. Do you really need six winter coats? When is the last time your kids played with that ping pong table? Really look around you, and assess all of the belongings that you have that are simply collecting dust. Put those belongings to much better use by selling them!
Following the above guidelines will help you to stay afloat during your financial disaster. They will also help you to get back on your feet quicker.