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Dealing with Financial Crisis

Dealing with Financial Crisis

(WPBN/WGTU) -- Personal financial crises can happen anytime, anywhere and can be caused by many things; losing a job, a divorce, bankruptcy, a sudden medical emergency, or any situation in which your financial security crumbles beneath you. Enduring a financial crisis is challenging, but you CAN regain your financial stability. How? Your situation can be remedied by regaining your composure and taking concrete action.

What's my first step for dealing with a financial crisis?

At some point, almost everyone experiences an unexpected crisis that rocks your financial world. It could be from losing your job, getting a huge medical bill, or having your car break down at the worst possible time. The first, and probably the most important, step you can take is to STAY POSITIVE. As difficult as this may get you need to put a financial crisis into perspective because your composure and your positive outlook is critical. Millions of people have gone through a similar financial disaster and survived - you will too.

Should I let my creditors know?

Take control of your situation by taking real action. Contact your creditors right away and be honest with them. Explain your financial situation and ask them for solutions like deferring payments, setting up a reduced payment plan, or possibly refinancing a loan to help take off the pressure. Your creditors will most likely ask for details about your financial situation, so have your monthly income and expense information on hand when you call them. Taking control by ignoring the situation and hoping they will forget about your debts will only make your situation worse.

Should I keep using my credit cards?

If you are in a financial crisis think long and hard about using any credit cards. It's so very tempting to swipe your credit card when you're short on cash but you're not doing yourself any favors by racking up additional debt. Cut off your tools for easy spending. In other words, take your credit cards out of your wallet or purse and put them in your underwear drawer. Similarly, delete your card numbers from online accounts.

How long should it take to get my finances back on track?

The length of time needed to recover from a financial crisis really depends on how bad the situation is to begin with, and how disciplined you are sticking to your recovery plan. Consulting a financial advisor can sometimes be helpful. They can help you consider solutions to clean up the problem and make sure you never have to deal with it again.

You will get back on track. Be positive, take control, exercise some spending discipline and you'll get through this! We have faith in you.