Times are tough.
The stock market appears to be regressing on an almost daily basis.
Banks are still proceeding with the foreclosure process on many people.
Companies are starting to announce job juts again
World economies are in turmoil.
Talks of recession are an almost daily occurrence.
You start to notice that while your expenses are increasing.
Your paychecks (if you are lucky) are staying the same but bills are starting to mount.
Do you seek help now in the hopes of avoiding financial disaster?
Do you wait until the phone starts ringing off the hook with people looking to collect their money?
Do you do nothing at all?
It is sometimes very difficult to seek out help.
It means swallowing your pride.
Admitting that you were wrong.
Perhaps even admitting to failure.
If action is taken early enough, though, doing so generally prevents even more disastrous results such as losing a home or filing for bankruptcy.
Help does not always come in the form of asking for financial assistance.
It can be as easy as talking to someone who has been in a similar situation or working with a professional to gain a better understanding of how you got to this point, what steps to take in order to remedy it, and how to prevent another occurrence going forward.
Obviously, the worst time to accept the fact that you need assistance is when it is too late.
When the bank has started foreclosure proceedings.
Your creditors are calling on a daily basis seeking payment.
Your bank accounts are negative.
All signs that you’re on the wrong path.
If caught early enough, simple changes may be all that is necessary to begin the recovery process.
Applying for a credit card that provides for 0% balance transfers and moving outstanding balances may help.
Starting an emergency fund in a high-yield savings account can too.
Developing a monthly budget and an action plan to pay down the debt that has already built up is yet another way in which you can start the process.
No one method will work for everyone, and it may take a combination of steps for some people.
You may decide that you need the help of a financial professional.
Choosing one that has a fee-only structure, and either hourly-based or project-based fees would be the recommended route.
Using credit counseling or debt consolidation companies not only costs significantly more in the long run but can also adversely affect your credit score.
Bankruptcy should always be the choice of the last result since it is irreversible, and will take up to 7 years to completely come off of your credit reports.
It is always best to have a continually updated financial plan, keeping a careful eye on spending habits with the goal of being able to foresee possible rough patches ahead.
If something should occur, you are then afforded the time to make adjustments to the plan in order to prevent problems from occurring or at the worst minimizing the effects of such unforeseen events.
No matter how you choose to deal with your finances, one thing remains clear: it is easier to admit that you need help than it is to deal with the consequences of being too prideful and allowing a situation to get too far out of hand.