Financial setbacks can happen to anyone at any time. A job loss or an illness can totally derail even the best-laid plans. With this in mind, there are several steps you can take to recover from a financial setback. Here's what you need to know.
Review Your Finances for Available Resources
This is the time to take a look at your emergency fund as well as any insurance coverages that you may have. If you've lost your job, look into Unemployment Benefits. Any resources that can help you get back on your feet will come in handy now. Don't forget about vehicles like Roth IRA's. You may want to look into taking some money out to help stabilize your situation.
Determine What Financial Decisions Must Be Prioritized
Once a financial setback occurs, you must figure out what bills are most important. If you are now short of funds, it may be more important to ensure you can pay your mortgage or rent, utilities and purchase food before paying on credit cards or student loan debt. By taking care of your most immediate needs you can reduce much of stress that comes with uncertainty.
Review Your Spend Plan - Contact Creditors
Take a look at your spending plan and see where you can cut costs. Once you've figured out what to do, start contacting your creditors to see if they will work with you by allowing you to pay some debts later or pay a smaller amount than normal for a period of time. Cancel any subscriptions that you can do without such as cable and streaming services. Once you've got your plan in place, track your progress.
Most of us will face a significant life even at some point in our lives that will negatively affect our finances. By using the tools above to quickly get back on your feet can be the difference between a short term setback and long term misery. Always remember to pray and keep God first in your life.Please Follow Me On Social Media @moneyisadefense