How to Deal With a Financial Emergency and Not Ruin Your Credit


How’d you feel if you are in a situation where it’s difficult to pay the bills?

It’s a horrible feeling. I must say.

Yet we all hope you’ll never be in a situation where it’s difficult to pay the bills, but things happen. You might be furloughed due to this situation which is not in your control, like the hundreds of thousands of people out of work right now with the partial government shutdown. Or maybe you or your spouse leave the job, let go or forced to take a sizable pay cut. Maybe an unanticipated expense is making things hard.

In fact, if your financial hardship is short-term, it’s still complicated. It is going to be tough. Things can become risky if you depend on your credit card to make ends meet on your bills, a strategy that can immensely increase your debt and decrease your credit score.

I’m sharing you some tips and tactics which you can follow. You can follow them on tough times to assist you to steer your way through things without damaging your credit score. Have a look!

How to Keep Your Credit Score in Tough Times

Look Into Hardship Plans with Your Credit Card Company:

Generally, this benefit is not publicized by the credit card companies. Therefore, there’s a good chance to initiate it. It’ll be up to you. Although, many companies do provide hardship plans to assist people better manage their debt. Importantly, hardship plans are repayment plans which are specially served toward a particular consumer’s financial situation. Also, applying in such a plan has no direct influence on your credit. Just be clear and honest with your creditor about why you need to apply for such a plan.

Stick to the Necessities:

You need to cover your car payments, mortgage payments, utilities and perhaps your phone bill. But your cable bill? Your Netflix, Hulu, Amazon Video and other streaming services? Eating out? Your daily morning Starbucks? Those are all things you can likely live without. Don’t be petrified to cancel or put a break on these luxuries until you can get back on your feet. You’ll be proud of yourself in the long run.

Pick up a Part-Time Job:

Don’t be too prideful to get a part-time job, if you’re out of work and your unemployment benefits aren’t cutting it. Because it will help you get through the tough times. It will help you to knock out some of the essential bills you’re on the hook for. See how just bringing in a few hundred dollars more per week can help you. Also, you can always leave the part-time job when you secure full-time work in your desired field once again.

Minimally, Always Make On-Time Payments:

If you are able to make the minimum payment on your credit card, just make sure you do it. Notably, credit scores are heavily weighed on whether or not you make on-time payments. If you will skip even one payment, it can cause your credit score to dip. So make payments on time if you don’t want to get docked for something so seemingly simple to avoid.

Don’t panic, if you’ve fallen on hard financial times. Create a strategy of how you’re going to address your situation, then act. It’s feasible to do without sacrificing your credit score.

Contact Credit Assistance LLC experts , if you are facing the financial crisis or  need help in fixing your bad credits. Our experts will not only increase your credit score, but also provide you best real estate investment advice, so that financial crisis never came back to your life.

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