(ThyBlackMan.com) It may have happened bit by bit without you realizing it, or perhaps in one fatal blow to your bank account. Whatever the case, you have now reached a point where you are in a financial crisis, and you don’t see a way out. The fact that you are searching the internet about the issue indicates that you are looking for ways to navigate through this challenging time. Here are 4 tips to help you on your way:
- Get a Handle on Your Debt
Adding more debt is not typically the best answer when you are in the midst of a financial crisis, but if you can identify a location that offers quick cash loans with low to no interest rates, you may want to take advantage of that. Before you do so, you need to be sure that you will be able to pay this new debt off in a timely fashion. You also need to be aware of all the debt you have outstanding. Make a list to be sure that you capture it all, noting payment amounts and due dates along the way.
- Redo Your Budget
Once you understand your debt, you will need to redo your budget so that you are living within your current means and paying off your debt. You will most likely need to make drastic cuts to your lifestyle. For example, if you have a new car with high monthly payments, can you trade it in for an older one that will have no payments? Or, even more drastic, can you sell your car and rely on public transportation? Selling your vehicle would alleviate car payments, insurance payments, and gas and maintenance costs. Public transportation may not cost you anything because some workplaces will reimburse employees who use it.
- Ask for Help
Before going to friends and family to ask for a loan, why not check with the people you owe money to first? Call your credit card company, utility companies, landlord or mortgage company and explain your situation. Ask if there are any “hardship programs” available for people in your situation or if they would be willing to accept reduced payments while you get back on your feet. If you have a good handle on your budget, you could even negotiate a debt settlement that reduces your debt and makes your payments feasible. If you feel overwhelmed by the magnitude of your financial situation, reach out to a financial counselor. Credit unions, nonprofit organizations, and some religious agencies In a Pinch – 4 Tips for Navigating a Financial Crisiswill provide these services at no cost to you.
- Prioritize Your Payments
If you have no other option, you may need to review your bills to determine which ones you require immediate payment and which ones can wait. Some bills have longer terms than others, allowing you to push your payment out for 45-60 days instead of the usual 30. To determine which invoices you need to pay, review each due date and then prioritize your payments by importance and the ramifications if you are late.
The bad news is that you are in the midst of a financial crisis. The good news is that there are multiple paths out. Your first order of business should be to understand your debt so that you can create a reasonable budget that addresses it. Plenty of organizations offer services to help you with this very thing, such as financial counseling and hardship programs. You may need to float some bill payments longer than you would like, but it can be worth it if it gets you back on your financial feet.
Staff Writer; Roy Parker
