Tips for Common Personal Finance Crisis

Major events in our lives can affect our personal finances.  But since all of us are bound to encounter big changes at one point or another, the best thing we can do is be prepared.  In this article, let’s discuss three major life changes and what you can do when faced with financial crisis.

Unemployment and Loss of Income

The recent economic crisis has left thousands of employees out of work and struggling to make ends meet.  This is why people are encouraged to build up their personal savings account especially while they are in the position to do so.  Take advantage of the opportunity to save money while you have employment.

If you are presently out of work, you need to create a new budget plan that will suit your situation.  It may require some adjustment on your part as well as your family since you’ll have to cut back on household costs and stretch your savings as much as you can.

[Article:  How to Handle Credit While Unemployed]

Keeping up with your loan payments and credit card bills can be very difficult if you have lost your job.  Instead of trying to hide from your creditors, call them up immediately to explain your situation.  Request for a modification of your repayment terms at least until you are able to find a new job.

Injury and Illness

Medical bills can quickly put anyone in a serious debt situations and this why acquiring a health insurance plan is strongly recommended for all. However, if you are presently uninsured, there are some things you can do to deal with the situation.

  • Look for clinics or hospitals in your locality that offer free medical service.
  • Ask for generic prescription drugs which are cheaper than branded ones.
  • Inquire about Medicaid or Medicare (for 65 yrs and older) coverage from your State’s Health Department.
  • Check from the Internal Revenue Service (IRS) if you are eligible for deductions.

Again, you should act quickly before your debts accumulate.  Call up your creditors to explain your situation and request for a new repayment plan.  Ask if your interest rate and penalty charges can be waived or lowered.

Natural Disasters

When natural disasters strike, people can lose their properties in an instant and financial crisis soon follows.  What can you do when confronted with this dilemma? First, it’s very important to be prepared.  Build up an emergency fund for you and your family.  Acquire important insurance policies such as home insurance and medical insurance coverage.

After the disaster struck, get in touch with your creditors to inform them about your current situation and request for a debt management plan.  Check if your company provides an Employee Assistance Program and register with the Social Security Administration to acquire benefits for disaster victims.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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