Overcoming A Financial Crisis

Online, April 15, 2011 (Newswire.com) - You may have just lost your job, and you don't have enough money to feed your family, take care of a sick family member or perhaps you have a lot of credit card debt. There are ways to survive this financial crisis, but you'll have to take action if you want to achieve financial stability.

First, you need to figure out how much money you actually have. Add up everything you have in your bank accounts, your 401(k), retirement plans or any other forms of income. Figure out how much money your assets are, like your car house, furniture or anything else that is considered property.

Now you must figure out how much actual debt you have. This includes car payments, credit card debt, your mortgage and student loans.

You will need to go ahead and contact your creditors and let them know what the situation is. Negotiate with them for lower payments.

You are going to have to change how you spend money as soon as possible. Stop excessive shopping, buying overpriced items and repeated daily expenses like sodas, snacks and coffee. You will also need to stop eating out. You can save a lot of money by buying and preparing your own food. Only buy things when you really need them. There is no need to go shopping for designer clothing.

Find extra cash to help you through this crisis. Take a part-time job, hold a yard sale, sell some antiques or collectibles. Cash in stock or savings bonds. Do what it takes to raise some quick cash and pay the bills.

Once you are beyond the immediate crisis, plan for the future. Can you increase your income? Can you cut expenses? Find ways each paycheck to set aside money in a separate account so that you can avoid this situation in the future. Once you dig your way out of this crisis, you never want to go back.