7 Pieces of advice to help you during financial difficulty

One day you are living it up, splurging on goodies, and just a few weeks later, your rent is due, and you are scraping pennies. Maybe you have just lost your job or have found yourself at the end of a bad deal. Whatever the case, it happens to the best of us. Here are seven pieces of advice to get you through a financial crisis.

1. Put All Of Your Expenses On Paper

Write down all of your monthly expenses as well as any money coming in. Put the most pressing expenses like food and shelter at the top, and list the nonessential bills at the bottom. This will make it easier to create a budget for your household and allow you to pinpoint the unnecessary expenses.

2. Make Partial Payments

When you are in dire need of cash, it is easy to go into survival mode and bite off more than you can chew. Don’t act out of desperation and opt for a title loan or agree to pay back a loan with an insane interest rate. Instead, just pay what you can. A lot of companies will agree to extend their services for a week or so if you promise to complete the payment at a set date.

3. Downgrade

If you are living above your means, you can expect one financial crisis after another. It is pointless to try and maintain a lifestyle that you know you can’t afford. Cut out any unnecessary spending, and take a break from participating in money-draining activities. If your debt is too large to get a handle on, you may want to downsize your home and trade your vehicle in for a cheaper model.

4. Find A Side Hustle

There are plenty of ways to earn extra cash on the side without committing to another nine to five. You can start by selling some of your gently used items online or at a garage sale. You can even ask around to see if your friends and neighbors are in need of any extra help with household chores, babysitting, or anything else that they can’t seem to get around to. The internet also makes it easy to earn cash online by doing surveys and writing reviews. You can even post ads for your services for free.

5. Look Into Available Assistance

If you are unemployed or underemployed, look into available financial assistance options to get you through your tough time. Do this even if you are actively searching for a better job because you never know how long it may take to find a good company to work for. You may qualify for certain government assistance programs that will provide you with food, medical insurance, and money. Also, check with your community to see if there are any programs that donate to those in need.

6. Haggle With Your Lenders

Nobody wants bad credit, and believe it or not, lenders will do anything to keep this from happening. If you are having trouble paying creditors, call and negotiate your terms. More often than not, they will either extend your term or lower your interest rate so that you will be paying less out of pocket. Some may even delay your payment dates for a month or so while you get your finances in order. Keep in mind that creditors are more willing to work with you if you aren’t too behind on your payments, so if you feel yourself approaching hard times, make these calls sooner than later.

7. Sell Your Home

If you are a homeowner facing a financial crisis, you have the option to sell your home so that you are able to get back on your feet. Gone are the days where selling your home can take several months, or even years. There are a few sources, like this website, that will do the footwork for you.

Try not to be so hard on yourself. Financial hardships have a way of coming out of nowhere sometimes. But the good news is, tough times don’t last. Just practice mindful money management and continue to work towards a debt-free lifestyle.