There’s no worse feeling than being caught in a financial hole. Often times, it feels like all you do is send money to creditors without being able to keep any for yourself to pay for food or clothing. If you are in a financial mess, what are some steps you can take to get yourself out of it?
1) Sell Everything That You Can
Consider selling everything that you can to make some quick money. If you have to, don’t be afraid to sign up for medical trials or any other offers that will net you some cash fast. If you don’t have anything that you can sell, consider lease equipment or anything else that people would be willing to pay to use for a short period of time.
2) Negotiate a Debt Settlement
If you still owe money after selling or leasing goods, the next step is to see if your creditors will accept a settlement. A settlement allows you to make one lump sum payment to settle your current debt. In some cases, creditors will take as little as 50 percent of what you owe to leave you alone.
3) Consider Bankruptcy
While not ideal, bankruptcy could buy you time to continue living in your home until you can sell it or figure out how to keep it. Bankruptcy also stops the nasty phone calls and letters that your creditors may be sending you. Make sure you talk with a qualified financial professional from a firm such as Harris & Partners Inc. (who handle bankruptcy in Hamilton) or others who can offer you information and advice about this important option.
4) Look for Another Source of Income
A second source of income could be just what you need to make ends meet and help you put some money in the bank. Finding a second job could also be the start of your second career that could be more lucrative than the one you have now.
5) Create a Budget That Will Tide You Over
Once you know that you are having cash flow issues, the best thing to do is acknowledge that fact and create a budget based on that reality. Sticking to a strict budget will allow you to stay within your means during a tough time without creating even more debt for yourself.
It is never easy to live each day knowing that you may not have enough money to eat or put gas in the car. However, by finding another source of income, asking for a debt settlement and budgeting properly will help you take the first steps to regaining your financial independence.