Ongoing inflation, low or stagnant personal income, little hope for better employment and a faltering economy are realities of American life that bring on financial exhaustion. No matter what stage of life you’re in, many Americans are scrimping for future needs – a home, college fund or retirement account - and have little or no safety net to fall back on. Many are taking on more unsecured debt to make ends meet, resulting in further dependence on credit cards. With nest eggs depleted and home values declining, it’s easy to see why people are exhausted. Here are some tips to deal with the pressure and exhaustion.
Recovering from financial exhaustion requires a serious commitment to resolving your debt and financial issues. Many people who worry about mounting debt may benefit from a free debt evaluation to help determine if either debt consolidation or debt settlement would be a wise choice. Counselors can help access your situation and help with correct poor money management and excessive spending habits.
But before you request further professional help to lift the burden of a harsh financial situation, consider three areas that you can handle on your own.
- Speak with your Creditors – Credit card providers, utility companies and medical institutions often have programs to help people who are struggling to pay their bills. Some will give you a reprieve on making payment for a month or two; others may set up a more manageable repayment plan that lowers your monthly payment or you may be forgiven late fees and other non-purchase charges. But you won’t know how they can help unless you make the call.
- Make Investments Off Limits – People do desperate things in desperate times but don’t compromise your future by borrowing from or cashing in investment, pension or retirement accounts.
- Use Credit Cards Sparingly– Credit cards aren’t the devil’s instrument they are often portrayed as in the media. Credit cards are an excellent source of funds for an emergency or when the purchase protections would be of benefit to the cardholder. Compare offers >
When you’ve done all you can on your own, contact a reputable debt relief company that can do the additional leg work required to intercede with collection agencies and credit rating bureaus. With their expertise on your side, creditors may be held at bay while you work out a plan to repay your debt. They can also work their magic to get black marks removed from your credit report and have the resources to assist those in dire straits that require housing assistance or government help.
Don’t let another day pass worrying and struggling to correct a bad financial situation. The help is out there; you just need to make the first step to ask for it. Click here to get started