Getting blindsided by a personal financial crisis is something that happens to the best of us. Whether it’s the loss of a job, an emergency car repair, or an unexpected medical bill, taking a drastic hit to your finances can be an extremely stressful experience. After all, the utility company won’t wait for payment, and you still have to put food on the table somehow. However, with the right know-how, it’s possible to navigate times of extreme financial hardship without maxing out your credit cards and eating instant noodles for seven days straight. Here’s how:
1. Consider Low-Interest Quick Cash Loans
You might think taking out a loan will only add to your financial strife, but quick cash loans can actually be a blessing in times of need. Many providers these days are offering small loans that are usually limited to a couple thousand dollars. Their low-interest rates make it easy to pay the monthly premiums while getting back on your feet.
If a sudden accident leaves you with medical bills you can’t pay or your car unexpectedly breaks down, a quick cash loan can alleviate your financial burden without breaking the bank.
2. Try to Negotiate with Your Lenders
It’s in your lenders’ best interest to work with you when you struggle to pay your monthly premiums. As soon as you anticipate you may have trouble paying credit card bills or your mortgage, call your lender to see if you can work something out. Often, getting in touch with your lender and explaining your financial burden can result in a lower interest rate or even a delay in making payments for a short period of time. Don’t wait until you’re severely behind on payments to call your lenders though, as doing so could mean they will be less likely to work with you.
3. Figure Out What’s Important and What’s Not
Once you’ve established a payment plan with your lenders, it’s time to figure out what expenses are important and which ones aren’t. For example, having a place to live is much more important than being able to watch TV, so it’s safe to say the cable bill can go when money’s tight. As painful as it might be to do away with your premium movie channels for a while, keeping them on and risking foreclosure just doesn’t make sense.
4. Don’t Be Too Proud to Accept Available Assistance
During a financial crisis, there may be assistance available to help you get by. From unemployment compensation to state and federal assistance programs, you could qualify for financial help based upon the situation and your current income.
Many people look at these programs as handouts and feel as if taking advantage of them makes them a failure. The reality is, everyone struggles occasionally, and those programs are in place as a temporary helping hand for when you need them most.
5. Plan Ahead for Future Financial Hardships
Use your current financial struggles as a learning opportunity. You never know when economic hardship is going to strike, so it’s a good idea to plan ahead for an emergency just in case. Start by creating a budget that allows you to pay your bills and save a portion of your income each month. Put the savings into an account as an emergency fund that you don’t touch unless there’s a serious financial emergency. Ideally, you’ll want to accumulate a couple months’ worth of expense money in your emergency fund, so you have some breathing room should something happen.
A personal financial crisis can be very stressful, but if you don’t panic and handle the situation using the tips outlined above, you can get through this time relatively unscathed.
