Four Ways to Ride Out a Temporary Financial Hardship

09-11-2016 | Dojo |


From unexpected medical bills to a job layoff, you never know what could be around the corner that could cause you a financial hardship.

Everyday someone is faced with the harsh reality that they cannot pay their bills. During these hard times, it can be very easy to get depressed. Unfortunately, you must keep pushing forward and understand that it most likely is only temporary.

If you really want to get out of this financial hardship, then you must be intense with your strategy. This includes everything from obtaining monthly installment loans to selling your belongings. To ride out the financial hardship, here are four tips to help you get through it like a boss.

Create a Plan

When you are struggling to get out of a financial hardship it can be much harder to do it when you have no plan. Your first course of action for your plan should be taking an inventory of all your debts.

Once you have all your debts listed, you can then see what you need to work with. Having everything laid out before you allows you to create a plan to alleviate each debt. Group all the debts that are not current so you can focus on getting them current first. Beside each debt, you want to also list the minimum payment for each one. This provides you everything that needs to get paid.

Start Selling Stuff Off

Since you want to get out your debts current, you should be drastic to obtain the money you need. This means selling anything you can do without to help fund the payments. If possible, have a yard sale or head to your local pawn shop to see how much money you can raise. Make sure you know the amount of money you need in order to get everything current so you have a goal to strive for.

Consider Installment Loans

If your debt payments are too much for you to handle, you may want to consider other payment options. There are many installment loan options available that allow you to make a payment that is better suited for your budget.

You have a set payment schedule and know when your debt is going to be paid off. Another great thing about installment loans is that you do not have to put any collateral down to secure the loan. This makes it easy for anyone to obtain to help them get out of debt.

Pay Off the Smallest Debt

When paying down your debt, you want to focus on the debt with the smallest amount. This one will be the quickest to pay off and free up money so you can start putting it towards the next lowest amount.

For example, if you have a loan with a $25 monthly payment, you want to put all the extra money you have towards that debt. Then once it is paid off, you can take that extra $25 and pay it towards the next lowest debt. This will help you snowball your debt faster so you can eliminate it.

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