Surviving Financial Difficulties
If you are facing sudden unemployment or other emergencies, you may find your finances in a pinch. It’s important to keep your cool and minimize the damage as much as possible. If you are paying the mortgage or paying off debt and you know you cannot meet your next payment, call your lender even before the deadline.
Before you call, determine when you will be able to resume payment and how much. Be sure you can afford whatever terms you will offer. There’s no point in negotiating for terms if you cannot meet them. It might also help to commit a conservative amount and date. It won’t hurt to under promise and over deliver.
When negotiating with your lender, it will be helpful if you had a great credit history before your financial difficulty. Use this to your advantage when negotiating that the lender waives the late payment fee or maintain or lower interest rates.
While the going gets tough, try not to get into new debt and simplify your lifestyle. Pay the rest of your bills on time to maintain your credit score. If you feel overwhelmed, consult a professional financial counselor who can help you explore and maximize your options.
To know more about handling your finances during a crisis, click here.