When your finances plummet it’s time to act, not time to panic. Whether finances are plummeting due to a job loss or overwhelming payments on a debt there is hope. Stay calm and try these steps and chances are survival will be easier than one thinks.
Reevaluate the budget
The first priority is to keep a roof over the family, and pay the most important bills. Each family will have a different set of “most important” bills to pay. For most families the priority will go rent/mortgage, utilities, car payment/insurance and then food. From there it’s all individual as to what is more important.
Collect unemployment
If possible file for unemployment. Each state has its own set of rules and regulations for collecting unemployment benefits and most have at least a one week waiting period so it’s important to file as soon as the job has ended.
Call creditors
Call the creditors and explain the situation. Promise to make a set amount in payments and send it in as promised. Send it along with a letter stating the promise and stick to it. Add to it whenever possible. Ask to have fees waived and interest rates dropped (sometimes they will waive the fees and drop rates and sometimes they won’t but it never hurts to ask). Be diligent in getting things paid off as soon as possible but maintain a roof overhead and the basics required for the family.
Sell excess
Humble thyself. Get rid of the excess. If there is more than one of any item consider selling the extras on Craigslist, eBay or even in a yard/garage sale. Remember, some money is better than no money at all.
Take part-time work
Many an unemployed person has managed to get through a season by offering their services for yard work, snow shoveling, pet sitting and walking, child care and more. Print out some flyers and go door to door offering whatever services can be offered. See a yard with lots of leaves in the fall? Knock on the door with a rake in hand and a box of trash bags and chances are a business deal will be made.
Go through the pantry
Go through the pantry and see how many meals worth of food are in there. Humble thyself and head to the food bank and sign up. There is no shame in this. Grow a garden and can, freeze or dehydrate the excess. Trade the excess at a farmers market in exchange for something else. There are many opportunities to expand on this.
Don’t just sit around begrudging the situation. If results are desired get up, get moving and find extra ways to bring in some extra money. Run errands for elderly, volunteer at local venues and make trades and barter for services. Just because there is no job doesn’t mean lay around and wait for one to fall in ones lap. Create a job by doing odd jobs and volunteering. Work online, job share, remember that the effort put forth will create momentum.
Remember that a financial plummet isn’t the end of the world. Many lived through the great depression and came out all the better for it.