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DEALING WITH A FINANCIAL CRISIS
Is your paycheck just not
enough to cover your expenses?
Perhaps you are unemployed and
have no income coming into the household? Are
your bills piling up? When
dealing with money issues, the
first thing you need to do is
consider all of your options for
solutions. Below are steps to
follow that will hopefully help
you resolve your money issues
quickly, and stress free.
Evaluate your situation
Thinking about answers to
the following questions will
help you grasp a thorough
comprehension of your situation:
- How much money are you
currently in debt?
- Who do you owe money to?
- When are you supposed to pay?
- Have you discussed payment options with your creditor or lender? Have
any offers been made to you?
- What will the consequences be if you do not pay?
- How long do you anticipate this issue going on for?
Explore your options
Outlined below are some
options for eliminating money
issues. If you would like us to
evaluate your situation and make
a recommendation, please
contact us.
Can't pay small bills
Are you having problems paying
your credit cards and/or
utilities? If so, contact the
company and find out if your can
work out some sort of
alternative plan to settling the
current debts. Also, you may
want to consider skipping that
months payments for your
utilities (not your credit
cards). Utilities do not report
your payment history to the
credit bureaus. They will impose
a small fee for missing the
payment. Bear in mind that you
risk having your utilities
turned off if you miss payments
for two or more consecutive
months.
Can't pay large bills
If you are having
problems paying your mortgage or
car loan, contact the lender. It
is common for lenders to offer a
modification to your regular
payments to help deal with your
temporary issues. You should
still try your best to pay your
mortgage on time. Regardless if
a temporary payment plan is
offered or not, late payments
will be reported to the credit
bureaus, thus affecting your
credit rating. If you have
savings, use that money, or
consider borrow from a family
member. If your problems
continue, contact a HUD
counselor for help.
Over your head in debt
If you have a regular
income, but large amounts of
credit card debt, you should
look to create a
financial strategy for paying
off the debt. Determine exactly
how much you can afford to
contribute towards debt on a
month-to-month basis. Avoid
using your credit cards. Use the
credit card debt calculator
to determine how long it will
take to get rid of your debt and
how much you will end up paying
in interest.
Accounts in collections
It is very common for unpaid
debts like medical bills, credit
cards and cell phone bills to be
sold to collection agencies.
These agencies will call you
relentlessly and send you
threatening letters. You need to
learn what your rights are when
being contacted by collection
agencies. They are only allowed
to contact you by mail. Once
contact is established, try and
negotiate a settlement.
Unemployment
Have you recently lost your job?
Having no income will mean
difficulties in making ends
meet. You should also contact
your creditors and explain your
unemployment situation and see
if they can offer you some sort
of payment option. Begin looking
for a job immediately so that
you can minimize the amount of
time that you are not working.
You may also want to consider
applying for a small
personal loan so that you can
pay your expenses until you
start working again.
Illness
When someone in the family
becomes ill, you may incur
tremendous medical costs. You
should have an open line of
communication with the medical
billing office and your
insurance company. You want to
make sure that any covered
services are being paid by your
insurance provider. If services
are not covered, try and
negotiate either a payment plan
or even a reduced payment. Bear
in mind that you will be
obligated for any medical costs
that are not covered by your
insurance provider. Any bills
that are not paid are going to
be reflective negatively on your
credit report.
Take initiative
Below are some options that
will help you overcome your
financial issues:
Unsecured personal loans
We offer loans that allow you to
borrow as little as $100 to as
much as $150,000 with no
collateral. These loans have
terms from 1-4 years with APRS
ranging from 5-20%. We also
offer
no credit check loans for
as much as $1,500.
Home equity loans
Homeowners should look to
take
advantage of the equity in their
home and get some
cash-out by
refinancing. Home equity loans
are also great for consolidating
debt. Just these loans can
also work for
consolidating your
debts. Be very careful about
using a home equity loan. If you
fall behind on payments, you can
lose your home. Learn what you
can do to
avoid foreclosure.
You should also examine the section
on the benefits of
refinancing your mortgage to
consolidate debt.
Credit cards
Utilizing credit cards is one of
the simplest, most
cost-effective means for
borrowing money for s short
period of time. You'll be able
to maintain your credit rating
as long as balances are kept
underneath 35% of your available
credit limits. Learn more about
smart credit card use. Examine
the different
credit card types we feature.
Let us help you choose the
best credit card for your needs.
Debt consolidation program
Star Loan Services features a
debt consolidation program that
can reduce your debts by as much
as 70%. Get a free, no
obligation
debt relief quote! We also feature a wide
variety of
do-it-yourself debt
elimination information that
will help you get out of debt on
your own.
Savings
Using your money in savings is
always scary. Once the savings
is gone, there is nothing left.
However, you should not feel bad
about using the money as it is
intended, for emergencies. You
also should look into whether or
not you can borrow against your
401k.
In conclusion...
Dealing with a financial crisis
is nerve racking. Take a step
back, absorb the situation and
analyze what you can do to help
yourself. If you have any
questions, please
contact us.
We also suggest you read the
section on
preparing for a financial
emergency.
Additional tips!
Falling behind on car loan payments can result in the
car being repossessed. We offer tips that will help you
avoid repossession.
Failure to pay your mortgage can result in foreclosure
of your property. Learn how to
prevent foreclosure.
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