Being financially challenged is one of the most stressful and emotional experiences that a family can face. The feeling of helplessness can be overwhelming, and it’s hard to see how you could possibly get out of the cycle you’re in. Luckily, there is plenty that you can do to help yourself and your family become debt free. Here are 4 ways to get your family out of financial distress.
Assess the Situation
To accurately decide on a course of action, you need to first determine how deep your debt problem is. Sit down and work out exactly how much you owe, to whom, and on what rate of interest. Which repayments are you struggling with the most, and which bills or loans should have priority? Obviously you should be working to pay off the largest debt with the highest interest first, but there are other options available to you, such as consolidating your debt into one loan. You can consolidate any unsecured debt, which will get rid of your multiple credit cards or personal loans.
This eliminates the confusion of coordinating multiple payments, and gives you the benefit of a low rate of interest. Having only one monthly payment makes it easier to budget and plan for, and can get your debt level down a lot quicker than paying all of your loans and credit cards off separately.
Notify your Creditors
As soon as you have trouble making any repayments, your first step should be to inform your creditors. They are surprisingly open to helping anyone experiencing genuine financial hardship, and you can form an agreement to change the frequency or amount of your payments so that they are manageable. Before you talk to your creditors, try and have a solid repayment plan in place, so you can let them know when you can pay and how much your payments will be. This increases your chance of having their support.
Focus on a Budget
Once you have a thorough knowledge of your financial situation and have notified your creditors of your current difficulties, you can start working on a concise and comprehensive budget. This will take quite some time, so set aside several hours for a few days when you won’t be disrupted. You will need to be quite harsh on what is a necessity and what is a luxury in order to free up some extra money to reduce your debts. Make meeting repayments an absolute priority, especially if your creditors have been understanding in reworking your agreement. Your budget will be an essential tool in reducing your level of debt.
If you’re tried everything on your own and are still struggling, or are worried about the stress of where to start, consider enlisting the services of a professional debt solutions specialist such as Fox Symes free debt assistance. They can help with every stage of the process, from budgeting advice right through to debt consolidation, personal insolvency and even bankruptcy assistance if needed. The consultants can also take over all negotiation with your creditors, as well as working out payment plans and agreements for all of your outstanding debt. Getting into debt is easy, it’s getting debt-free that is the challenge. By admitting that there’s a problem and seeking help, you’ve already taken the first step towards getting your family out of financial distress. Remember that taking action early is vital, and that there is plenty of help out there to assist you in freeing yourself of debt. A professional debt solutions specialist can be the key to a debt-free life for you and your family.