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Managing Money Info
-Financial Strategies

Dealing with:
-Financial Emergencies
-Money Issues

Children & Credit:
-Allowances
-Teaching Kids Credit

Saving Tips:
-Saving Money
-Savings/Investing Calculator
-Trimming Expenditures
-Cut Grocery Store Costs
-Avoid Wasting

Budgeting:
-Why You Should Budget
-Developing a Plan
-Mistakes to Avoid
-Money Spending Challenge

General:
-Checking Accounts Money



 


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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Managing Money Info: Financial Strategies | Financial Emergencies | Money Issues | Allowances
Teaching Kids Credit | Saving Money | Savings/Investing Calculator | Trimming Expenditures
Cut Grocery Store Costs | Avoid Wasting | Why You Should Budget | Developing a Plan
Mistakes to Avoid | Money Spending Challenge | Checking Accounts Money

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