Financial hardships can happen to anyone. Whether it is a job loss, medical expenses, or other causes – realizing you have more bills than you can pay is stressful.
Plenty of people have faced challenges with their personal finances. And plenty of people have dealt successfully with their challenges by following these steps for dealing with hardships in tough financial situations.
1. Take a deep breath
The first step is simple but might not feel easy. It’s hard to think straight and make a plan when you are feeling panicked. So, take several deep breaths or use these relaxation techniques to get your mind in a good place.
2. Make an inventory of your expenses
Next, write out all your expenses so you can prioritize which bills should be paid when. Whether the problem is credit card payments, your monthly mortgage, healthcare bills, utilities, or other expenses – decide which bills are the most pressing and pay them first.
Once you can see the big picture of your finances, it’s time to create a budget and look for ways to save money. Remember that saving a little money a lot of ways can add up. Taking a break from eating out and food delivery, looking for ways to make your phone or cable plan cheaper, and canceling premium app subscriptions are some things to consider.
4. Ask your lender for help
When smarter budgeting alone doesn’t solve your financial hardships, it might be time to talk to your lender.
So click below to download our guide on dealing with hardships to learn more about situations when your lender and a loan modification can help you.