Getting Over a Financial Difficulty or Set Back

When faced with financial struggles or difficulties, we need to pause and take time out to reflect on what could’ve happened. We may need to re-think and evaluate our financial concerns. Here are few things that we may need to ask ourselves and it might help us resolve and get over such financial difficulties.

Have we determine our financial priorities?

 When we are recovering from a personal setback, establishing financial priorities will help us focus our effort and resources. Not all of your household debts will equally impact our families. Our first payment priorities should be bills associated with our essential needs, including utilities, food, mortgage or rent, and insurance. While we may be able to find ways to save on all of these bills by cutting back and negotiating lower rates, paying them is extremely important.

Can creditor hardship programs help us with our credit card debt?  

If our debt is all over and can no longer make a better option to pay, we can get professional help by asking the lender for a payment arrangement. Some lenders offer programs to help in re-structuring the debt and payment.

 

Victim of Identity Theft, made you in the “red” zone?

If there is a suspected fraud activities on your account, do not hesitate to call your bank to investigate. It may take some time for the results, but it will be worth the long process, financially. You can also ask for a fraud alert.

 How to keep insurance coverage if become unemployed?

Things that we cannot control happens – in such cases, we need to be prepared. We can check with the insurance provider if we have the right to extend your medical coverage, usually there is. Under these rights, insurance payments will likely be significantly higher than they were when still employed, but they will be lower than similar coverage obtained on our own. Having appropriate health insurance coverage is essential because without coverage, a medical emergency could devastate our finances.

 “What is voluntary and involuntary repossession, and how does it affect our personal credit?” 

Some loans are secured with collateral, such as a vehicle. If the terms of a secured loan are not met, the financial institution may take back/repossess, the collateral. When the consumer takes the initiative to return the object—before the financial institution takes it—it is called “voluntary repossession.” Both types of repossession, voluntary and involuntary, affect our personal credit in the same way. The only difference is that if we voluntarily return the collateral, we could save on some fees associated with its collection. Either way, the derogatory notation will remain on our credit bureau file for certain years.

Author: Michael Welter

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