How to Deal with a Financial Emergency

Loading up your bank account and finding little to no money can be discouraging, especially when you have a bill due.  If you have no way of paying your mortgage, rent, car loan or grocery bill, it can get stressful fast.  Since you can’t really make $300 in less than 10 minutes, you are probably wondering what you should do in case of a financial emergency.

While there are some things that you can do, let’s take a glance at how you should deal with a financial emergency, in case one does happen, or god forbid, you’re in that situation right now:

#1 Take a look at the situation

First of all, take a close look at the situation.  Why are you in this situation?  Did you lose your job?  Are you spending your money in the wrong places?  Are you making $1,000 a month and your bills are more than $1,500?  No matter what situation you’re in, you should be able to pinpoint the exact cause of the situation.  By taking a deep breath and analyzing your situation, it can honestly make things a lot better.

#2 Start a list

If your emergency deals with more than one bill, you have to prioritize.  What is going to be more important?  Do you want food on the table, or do you want a roof over your head?  With a mortgage, you probably already understand that it can take months, if not years before they give you the boot, but with food, on the other hand, you can go hungry in less than a few weeks.  Plus, do you really want to go without food day after day?  With all of this being said, make sure that you create a list and place the most important bills at the top.

TIP:  If you can, start cutting bills right now.  Bills such as your cable, iPhone, Netflix subscription and more have to be cut out.  These luxuries are for those that can afford it.  While I’m not trying to be mean, you have to realize that you can always subscribe to these things down the road.

#3 Call your lender                         

Whether you’re stressing out about your mortgage or your ten credit card bills, it’s time to call up each lender.  Believe it or not, but if you call up the lender and nicely explain your situation, they can actually do a lot for you.  Some are willing to lower the interest rate, while others are more than willing to even skip a payment.  All lenders are going to vary, so make sure that you call each and everyone up and see what they can do for you.  You may be able to save a few dollars just by cutting the interest rate back.

#4 Extra money is your friend

Bills just won’t go away overnight, and we all know that.  If you can, try to find additional ways to make money.  Whether it’s finding a simple part-time job or even doing some freelance work on the web.  As long as you have the energy, making money isn’t that hard to do.

#5 Find assistance

Always remember that if you’re really deep in the hole, check with your local state.  Many states have assistance widely available for those that desperately need it.   As long as you meet minimum income requirements and other conditions, there’s no reason you won’t be eligible.

This was written by Kathy Cady.  Her website can help you find out what thousands of things are going to cost in life.

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