Some say money makes the world go 'round. Others claim it's the bane of their existence. You may fall somewhere in between these two schools of thought, perhaps depending on the current state of your finances. It's easy to become discouraged or feel overwhelmed when a financial crisis hits. It's also not uncommon, especially in New York and other high-cost-of-living states. A key factor to getting back on your feet is knowing what options are available to help you overcome serious financial problems.
The good news is that there are usually several options available. Most financial snags are reparable. You may be able to regain your footing by implementing a simple restructuring of your payment plan. Then again, some situations call for stronger solutions. You can take comfort in knowing there are support networks available to help you determine which options may best fit your particular needs.
Independent plans versus outside support
If your main problem seems to be that you have been treating credit like cash or simply spending more money than you earn, you may be able to overcome your current financial challenges by adjusting your personal spending habits. The following list includes other self-help ideas that may or may not suffice to resolve your current financial problems:
- Some people find that taking a few crash courses in personal budgeting and money management is all they need to gain stronger footing and resolve minor financial problems. You can often learn about such topics at a library or online, although you'll want to make sure the information you gather is valid as there are plenty of debt relief scammers out there waiting to take you for a ride.
- Your creditors' desire for you to be able to pay back debt may be as great as your own. Sometimes, all it takes is contacting them to request a temporary restructuring of your payment plan and a brief explanation of your circumstances to prove your need and show your sincerity of intent to satisfy your debt.
- Facing debt does not give creditors license to harass you. You can be proactive to protect your rights through the Fair Debt Collection Practices Act.
- You may decide that selling an asset is better than facing repossession of the same. Concerning secured debts, such as a mortgage or car loan, this may be an option that you determine is best to avoid defaulting on your loan.
When independent actions aren't enough
Extenuating circumstances often call for stepped-up measures in order to tackle serious financial problems and set the tone for restored financial stability down the line. Some potential solutions sound great up front but lead to worse financial conditions in the long run. Your ability to spot a scam or recognize a possible mishap in a particular plan may mean the difference between viable solutions and continued financial distress.
Many New York homeowners, business owners and others choose to rely on experienced navigators rather than trying to sail their financial ships through rough waters on their own. Doing so is often the swiftest, most economically feasible means toward a positive outcome.