It’s very easy to plan your life. However, there will always be unplanned events that will efficiently put your plans on pause. Job loss, a loved one’s death, an accident or a long illness. These situations can prevent you from going to work for a long time. In addition, all are situations you cannot control, and it can unwillingly bring you into serious financial difficulties. As soon as such a situation happens to you, you must prevent rather than cure. You must act quickly with the right solutions for your personal situation.
Sometimes methods already put in place in the past to manage your financial difficulties are not adequate to the “new” situation…
Tips other than saving money to help get out as quickly as possible of this unwelcomed situation.
1 – As previously mentioned, you need to act quickly. Not paying your bills will bury you under a mountain of debt and certainly is not a good solution. Also, it will bring down your credit score and it may prevent you from buying a house or a car. If you are having financial difficulties, make an arrangement with your providers if you can, but keep paying the minimum amount. This will help keep a good credit score.
2 – A detailed budget will help you keep a clear vision of your expenses and spending habits.
3 – For services that bill you once or twice a year, like life insurance policies, make an arrangement and pay monthly installments. That way you won’t have a big amount to pay!
4 – For cable, internet, phone and cell phone services, it’s a good idea to re-evaluate your needs. Go shopping for better packages that will suit those needs. After all, you are “allowed” to change providers! For internet data on your cell, make sure your plan does not bill you for MB used over your monthly limit. Get a plan that will prevent you from surfing the web on your phone if you’ve gone over your limit!
Financial difficulties can be bad for your health…
5 – When in financial difficulty, your stress and anxiety levels will most likely skyrocket! We advise you to reach for professional help to make sure you make decisions with a clear head. Here are 2 websites recommended by the Government of Canada where you can find help in your area.
https://defensedesconsommateurs.org/nos-membres/
https://creditcounsellingcanada.ca/
6 – Don’t be scared to ask your creditors for help. They prefer being paid instead of having to run after you. Also, by continuing to pay, even if it’s a lesser amount, you will not be charged administrative fees by the creditors and by your bank and you will keep a clean credit score.
7 – If you owe big amounts of money in taxes to the government, negotiate with them to repay them over the course of 1 or 2 years.
8 – Apply for a Credit Rebuild Plan at Credit2Go! It’s quick and simple! We take pre-authorized debits from your account. In addition we send reports to Equifax and TransUnion that you are making your payments. Finally, at the end of your term (minimum 1 year) we give you back all the money you’ve been saving!
All events planned and unplanned bringing someone into financial difficulties are similar. However each situation is very personal and different. Don’t give up! By following these 8 steps, you’ll soon see the light at the end of the tunnel!