Is it deep sea of debts that you are sinking in? Or something else has robbed you peace of mind? It is obvious that you are struggling hard with your financial crisis and looking for a way out of it. Looking back, you realize that nothing was planned properly and with little money left out, you feel frustrated.
You have still a lot of financial obligations to fulfill, like paying for tuition fees of your children, necessary bills, medical insurance and most importantly, you have feed yourself and other members in the family to live. The question is, how to lessen financial stress? Consider the following guidelines to lead a worry-free financial life.
Assessment is important:
Take time to evaluate your financial condition. You are worried about ‘too’ many things and being calm and composed might be the last thing you will think about. Still, it is most important to sit down and assess your current financial standing.
What has caused such disaster? Financial emergency can result from many a factor but you need to know the cause. Has it resulted from job loss or salary cut? Or is it anything to do with mounting expenses on necessities? Or is it your inability to cope with payment of monthly installment for loans? Whatever the cause is, result will lead to financial disaster. However, knowing the cause is important as the approach will be different to bring you round from the verge of financial death.
List expenses on priority basis
All expenses are not equal. There are some expenses which need to be prioritized. For example, food, clothes, shelter and educational expenses. Does it make any sense to risk foreclosure in order to enroll in a premium cable package or plan an expensive mobile set buy? It is not wise to invite financial jeopardy by paying for expensive things while you are not be in a position to meet expenses for necessities.
See which bills you need to pay first. By recognizing the most important ‘categories’ of expenses, you can trim your monthly budget. This will be possible by eliminating the unnecessary buy or what you can put on hold for the time being. I admit that it won’t be an easy task to do as you are already used to those things but it is necessary to prevent your financial malignance from spreading and also nursing it back to normalcy.
Just calculate, even by saving $20 on five such unnecessary or not-so-important things, you will be able to make monthly saving of $100 which can be channelized to other more important areas like investment.
Negotiate with creditors
Reach them before they reach you! If you are unable to pay a huge sum or need extension of repayment period, most of the lenders will agree to your proposal. They will be willing to do it for the best of their interest. Even the credit card companies allow you to delay in payments. The mortgage lenders too will respond to your request for loan restructure that will make payment lower and easier for you. The gas or electricity companies also consider and offer flexible programs of payment so that you can manage with your hardship and still can enjoy the utilities. They won’t like to lose the clients, you just need to take action much before things go sour.