How to Overcome Temporary Financial Hardships

National nonprofit credit counseling agency Take Charge America offers a range of guidance, from negotiating with creditors to reassessing monthly expenses

PHOENIX--(BUSINESS WIRE)--It can be overwhelming to experience financial difficulties without a clear plan. But a temporary hardship can be just that — temporary — and the right guidance can set people back on track.

“Whether a job loss, medical emergency or expensive car repair, anyone can find themselves in financial distress at a moment’s notice,” said Manuel Salazar, chief executive officer of Take Charge America, a national nonprofit credit counseling and debt management agency. “If you don’t have emergency savings to weather the situation, you need to carefully weigh options for bringing in more income or assessing debt payoff strategies.”

Robbins shares five ways to overcome short-term financial difficulties:

• Ask Your Creditors About Temporary Hardship Plans: Proactively communicate with your creditors if you’re falling behind on payments. Many credit card companies offer temporary hardship plans amid major life events enabling you to renegotiate terms, defer payments or lower interest rates. Each case is evaluated individually.
• Seek Free Credit Counseling: If you are unsure which path to take, a free and confidential credit counseling session through a nonprofit agency can help. Conducted online or over the phone, you’ll receive a personalized financial assessment, budget and action plan for eliminating debts.
• Create a Budget: A staple in healthy financial practice, sticking to a budget keeps you informed of your income, expenses and debts. It gives a clear look at your obligations, the lifestyle you can live and the ability to pause or cut unnecessary costs when difficulties arise. If you don’t have a budget, create one using a free budget worksheet online or mobile app. You can also create your own worksheet by simply dividing a sheet of paper in two columns – one for expenses and one for income – and comparing.
• Assess Your Subscriptions: In an on-demand age when virtually anything is available with a few clicks, it’s easy to get stuck in subscription traps. A few dollars a month may not seem like a budget buster, but multiple subscriptions can add up quickly. Review your budget or online banking statements to see if you can pause or eliminate subscriptions to free up more cash flow.
• Explore Gig Work: If bringing in extra income would help, consider signing up for gig work via apps like TaskRabbit, Uber, Rover or DoorDash. Pick your own schedule and gig type.

For more financial resources, visit Take Charge America’s Budget Tools.

About Take Charge America, Inc.

Founded in 1987, Take Charge America, Inc. is a nonprofit agency offering financial education and counseling services including credit counseling, debt management, housing counseling and bankruptcy counseling. It has helped more than 2 million consumers nationwide manage the personal finances and debts. Learn more at takechargeamerica.org or call [phone].