Financial troubles routinely feature on the top of the list of things that people worry about. While many people are prepared for the occasional extra expense – a broken window, a stolen bike, a new school uniform – it’s the true financial crises which grab us really rattles the cage and make us panic. You can’t really prepare for a lost job or an unexpected redundancy, but you can minimise the force of the blow that that un unexpected financial crisis deals on your way of life. With the right help, advice and knowhow, it’s perfectly possible to get yourself out of an unexpected financial crisis.
- Stop and take stock
First things first – give yourself a minute to get all of your initial panicking out of the way. It’s a normal reaction, and while it won’t help your finances, getting this out of the way so you can buckle down will help. Once you’ve cleared your head, take stock of how you got into the situation that you’re in. Analyse what happened and isolate the source of the problem – from there you can start looking for your solution.
- Sort out your priority expenses
Work out how much money you have to hand, how much you have coming in and how much you owe. The chances are that if you are in true crisis mode, you will have found yourself unemployed, meaning that your debts are getting bigger instead of smaller. This means a couple of things, including that you may have to cut back on your expenses and luxuries while you get yourself back on your feet. Work out which of your debts and expenses are the highest priorities and work on addressing those first.
- Start negotiating
In some cases, such as store card debts, you may find that there is a clause stating that you can pause repayments should you find yourself out of work. In other cases you may find that you can negotiate a brief pause in your repayments while you get your feet back on the ground. While it may not seem like the done thing, this is a case of ‘don’t ask; don’t get.’
- Look for a new source of income
Many people can find alternate sources of income if they look hard enough. This could be buying and selling at an online auction, getting rid of old things you no longer need at a boot sale or even selling your skills at an online learning site. Thanks to the rise of the internet tutorial, creating an online course that people can study from can be a handy way to passively supplement your income. These tutorials can be anything from playing the guitar to how the basics of crocheting – if you know a skill well enough, you can teach someone online.
- Don’t be afraid to ask for help
If all else fails, don’t be afraid to ask for help. There are many ways that this can be done, from seeking independent financial advice to taking out a homeowner loan which could cover all of your immediate expenses and place everything under a single repayment. Remember you can always ask family and friends for help and advice, but remember that they may have their own financial struggles which means they may not be help you out.