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3 Types Of Financial Crises (And How To Deal With Them)

None of us are immune to financial crises. Life often throws a spanner in the works, and it can throw us into a state of disarray, especially where money is concerned. It’s tough, but there are always solutions to the problem.

In this article, we will look at three types of financial crises. Some of the same rules apply for each, so follow the linked article for general coping advice in a financial crisis. However, there are extra steps you can take to alleviate the damage in the crises presented here.  While we hope you never have to endure any of the following, we hope the advice we give proves useful to you if you do.

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Crisis #1: Divorce

Not all marriages work, and this can be costly on both an emotional and financial level. You will be forced to live on a lower income when you find yourself on your own, and you may find yourself in a heated battle over possessions.

Tip: While still married, it’s always worth taking out a prenuptial agreement. This will protect your assets should divorce take place, and will afford you some level of financial security. This will ease the stress of the divorce, as you won’t have to pay court costs to regain possession of your goods should your former partner claim ownership. After the divorce, you may also want to downsize into a new property, unless this has already been forced upon you at the breakup stage. This will help you financially, as you should have less to pay on bills, and on an emotional level, moving somewhere new may also help you escape any bad memories that your current home holds.

Crisis #2: Unemployment

Suddenly finding yourself without a job can be traumatic. It doesn’t matter why you are unemployed, be it through your own fault or as the result of a redundancy, because either way, you are going to find yourself with a reduced income in the months to come.

Tip: Ensure you get the benefits you are entitled to. While being unemployed sucks, you are entitled to housing and unemployment benefit, both of which will alleviate the burden. There may be other benefits open to you, so check with your local government office for advice. The next thing to do is get back on the job ladder. Get your cv in order, and start browsing the job ads again. There is some excellent advice here to get you back into employment.

Crisis #3: An illness or an accident

Being unwell is bad enough, but there are the financial repercussions to deal with. UK readers have the advantage of free health care, so there shouldn’t be medical bills to consider, although readers in other provinces may have this burden. Being away from work can also lead to a lack of income. You might lose your job as a result of your health crisis, or you may have to live on a lower income for a while if your job doesn’t offer sick pay. Therefore in the event of an accident, it is important to speak to a car, truck or motorcycle accident lawyer on a way forward.

Tip: Again, speak to your local government office for any benefits you are entitled to. Especially when off work on a long-term basis, you will be entitled to statutory sick pay (when in the UK), and possibly other benefits as well. If you are housebound, there are ways you can generate some income too, so you may want to consider some of the money-making opportunities here to tide you over.

Finally

To prepare for a crisis, ensure you put money into an emergency fund. This will be useful if and when disaster strikes. And if you are going through a financial crisis now, follow our tips if they were applicable, and get any help you need, such as through a debt charity or your local citizen advice centre. You are going to have to budget what you have, and you will have to curb unwise spending, but there are steps you can take in any circumstance to get yourself back on your feet. http://credit-n.ru/offers-zaim/joymoney-srochnye-online-zaymi.html

Beat The Stress Of A Financial Crisis

Because money has so much influence over our quality of life, running into a financial crisis can be extremely stressful. Having worked so hard to attain some level of financial stability, one stroke of bad luck throws it all into the air, and can leave you feeling like your life is slipping through your fingers. If you’re in the grip of a financial crisis, here are some of my best tips for dealing with the stress of it all

Close Off Avenues to Easy, Frivolous Spending

One of the most challenging aspects to recovering from a financial emergency is a potent sense of hopelessness. When you lose all sense of structure in your personal finances, it can be very hard to figure out exactly where your money is going. The best response to this is pinning down all the most obvious leaks, and cutting off your avenues to easy, unwise spending. Deleting online accounts you shouldn’t be using, leaving some of your credit cards at home when you go out, or taking cash out to set yourself a firm budget are all good ideas. While this won’t fix the problem entirely, it will certainly plug some of the leaks, and give you some more wiggling room for figuring out your next steps.

Draft a Plan

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Once you’ve stopped money haemorrhaging from your account, the next step is devising a plan to tackle whatever’s at the root of your financial emergency. Whether it’s heavy debt, retirement coming up too fast, or a health emergency, you’re not going to make much progress without a plan in place. Start off by getting onto Google, and looking up all the information you can about dealing with your specific situation. There’s all kinds of great resources available, informing you on preparing for retirement, debt reduction, and pretty much any other financial issue you can imagine. You may also want to research companies which deal with your kind of situation, such as New Era Debt Solutions and George T. Bochanis Law Offices. Once you’ve done enough research, it will be so much easier to start setting out a plan with measurable, time-constrained goals for working your way back to financial stability. As the old adage goes, failing to plan is planning to fail!

Don’t Hide Things From your Spouse

Financial challenges can bring marital constraints down on your head like nothing else. Money problems have broken countless marriages in the past, and this certainly isn’t going to change any time soon. The best way to avoid any relationship constraints over money is to be as honest as possible with your spouse. Never hide anything from them, no matter how noble you think your intentions are. Put all your cards on the table, and give them all the gory details about your money blunders and challenges. While a financial crisis can be a massive weight on both your nerves, every relationship hinges on honesty and self-reflection, no matter what else is going on in your lives. Don’t let money get in the way of something more important!