No matter your current situation, financial wellbeing is never guaranteed. A stable job and steady income can create a false sense of security, but financial stability can easily turn on a dime. Whether you are hit with an unexpected layoff, hospitalization, identity theft or a bad investment, a sudden financial crisis can happen to anyone. Having a solid plan in place to extricate yourself from financial disaster is key to keeping your head above water if the worst were to happen.
Supplement with Short-Term Cash Sources
Debtors don’t typically wait for you to re-stabilize yourself after a financial downturn. Even while you are working to rebuild your financial security, you will still need to pay your monthly expenses. It is common to seek out cash loans to temporarily relieve financial woes, but it is unfortunately just as common that unscrupulous lenders prey on those in need. Many payday lenders charge exorbitant interest rates, to which the customer agrees out of necessity. This, in turn, can further financial struggles, effectively leaving the customer in a never-ending loop of debts and payday loans.
Seeking out zero interest fast cash loans offered by not-for-profit organization is an alternative to payday loan sharks and unsavory lenders. At a not-for-profit fast cash loan organization, those who have trouble obtaining credit are often able to get fast cash loans with fair and reasonable charges and fees. Oftentimes, if the borrower has trouble paying the loan back, the not-for-profit lender will work with the borrower on a low-interest payment plan.
Reconfigure Your Budget
If you find yourself in times of financial peril, one of the first things you should do it reconfigure your budget. Take a hard look at all of your spending and minimize extraneous purchases. While we can get used to certain comforts when there’s money to spend, eliminating anything that isn’t an absolute necessity will help tide you over until you regain your financial footing.
Reduce Your Expenses
Once you’ve taken the step of reconfiguring your budget and reducing your extraneous expenses to a minimum, now is the time to look at how you can reduce even your bare-bones necessities. Monthly necessities like rent and utilities can be split with a roommate, and recurring expenses like car insurance, and phone bills, groceries, can likely be purchased for less.
Rely on Your Talents
A quick and short term way to make extra cash is to monetize your skillset. Consider your talents and create ways they could generate extra income each month. For example, if you’re a talented pianist, offering private lessons could be a great way to generate extra cash. Almost any skill can be monetized; and who knows, you may accidentally stumble upon a new business venture!
Dip into Savings
Ideally, you will have an emergency fund with a minimum of three months worth of living expenses which you can utilize if need be. If you don’t currently have a specific emergency fund, dipping into your savings account or cashing out part of your retirement account early may be necessary if you find yourself on the verge of poverty or homelessness.
Financial struggles are a constant source of stress and anguish for many people. From people who live paycheck to paycheck to those who enjoy a good deal of financial freedom, having a plan to pull yourself out of a negative balance is key to getting back to financial stability.
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Contributed content
Founder Dinis Guarda
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