Are you thinking about trying to get down from the ledge of financial ruin? You’re not alone if you are, and we’re certainly not trying to take your situation lightly at all. The truth is that a lot of families right now are having to make some very hard decisions. You have our sympathies if this is something that you’re going through. It is very important to make sure that you have a plan if you’re in this situation, because there’s a lot more at stake than most people think about. If you find that the bills have gotten out of control, your spending has reached an all time high, and you’re not sure what would happen in the case of an emergency, it can be hard to imagine that there’s even a way to get out of the mess itself. But there really is — and here’s what we think you should do if you’re on the edge of financial ruin.
First and foremost, you have to start thinking about a budget and how to cut back on expenses. This is the part that most people hate, but the truth is that if you can cut back on the expenses that you are making, you will be in a much better position to actually do the things that you need to do with your debts. Don’t feel that you have to settle for not getting these details right. They take time and they may take some sacrifices, but it’s going to be worth it in the end when you’re on safer financial ground.
Another thing that you will want to do is look at possibly consolidating all of your credit card debts. We know that credit card debt isn’t the only debt that you might have to deal with, but it’s often the debts that carry the highest interest rates and charges. Knowing how to deal with that is going to be a very powerful position in your financial life. In other words, if you can at least deal with the credit card debt, you’ll be in a better position to handle other debts as well.
Don’t feel like you have to take on everything at once. Take on the issues that are most critical. More than paying down the debts, you’re going to need to make sure that you have an emergency fund. The little things in life are often what can derail our finances.
For example, you might find yourself in a position where you need to repair your car. Well, if you don’t have any quick savings pool that you can tap from, you may be pushed into a payday loan — and those are just downright crazy in terms of interest rates. We’re not saying that payday loans don’t have their place but when you’re on the brink of financial disaster is not a time to go and acquire more debt that you have to deal with. Treat payday loans as a last ditch resort, if you can.
Overall, there are some ways to slowly get out of debt and onto a better financial page, so to speak. Don’t feel like you have to do it all on your own, either. In the UK there is an organization called the Citizens Advice Bureau that can help you get through this challenging time in your life. Seek them out — they will consult with you on the phone in a confidential manner. Even if you already have a financial blueprint and a plan to make it come alive, there’s nothing like being able to hear someone else cheering you on for a change! Check it out today!