A personal financial crisis can happen at any time without warning. It is important to be aware that no matter how much savings you have in the bank, one major accident, illness, or layoff from work can deplete your financial security quickly. If you are in a position where the future is uncertain, and your finances are bleak, it is time to spring into action and do what you can to keep matters from worsening and be better prepared for the unexpected events that life can throw at you.
Stop Buying Unnecessary Household Items
Now is not the time to go on a spending spree. It is time to carefully determine what is needed to survive. Put off large purchases until your financial circumstances improve. It is better to have some money in the bank than none at all. Come up with a bare-bones budget that allows you to take care of the necessities and still keep some money in the bank.
Pay as Much as Possible on your Bills
Do the best you can to make at least the minimum payment required to keep your lights on and the credit card companies happy. Determine which bills deserve immediate attention and pay them first. Consider that housing, food, and utilities are necessary, so focus on paying for these things. Think about the things you can reasonably do without and start cutting them out of your budget. That way, you will have more to put toward your bills.
Ask for Extensions or Make Payment Arrangements
Contact your creditors and see if they will grant you extra time to pay your bills so your accounts stay in good standing. They may be able to change your payment agreement or even lower how much you pay for a pre-determined length of time.
Sell What is Just Laying Around the House
Go through your home and find all the items that you no longer use and can sell. List them on Craigslist, eBay, and through your local buy, sell, trade group on Facebook. You’d be surprised at how quickly your ‘junk’ sells and earns you extra cash. Use the extra money to stockpile groceries while they are on sale. You will not be forced to pay full price for them when you need them if you plan ahead.
Research ways to do things yourself. Stop paying other people to do things for you. Learn how to do them yourself for free. Watch videos and read tutorials on ways to fix your home, change your oil, and even bake your own bread. Use this time to build new skills. You never know when an opportunity will arise to help others by doing what you have learned. Someone may be willing to pay you for your time, talent or services, too.
A personal financial crisis may take time to overcome, but it is doable. With the right attitude and an abundance of resources, you will be able to persevere no matter what life throws at you.