Do you have an action plan to cover a financial emergency? Most people don’t, unless you consider a savings account with about one month’s wages in it. What happens if you lose your job, become seriously ill, are drowning in credit card debt, need to refinance your home or vehicle, or have to make a deal with a major creditor? Fortunately, there are ways around nearly every personal monetary crisis. The trick is knowing where to look for help and what to expect. For instance, even before an emergency strikes, consider working with a low-fee or no-fee consumer counselor to work out a plan for preventing financial problems.
And if a serious medical situation throws your life out of kilter, investigate the possibility of using a viatical settlement to pull cash from a life insurance policy to cover immediate needs. Other commonsense strategies include getting a debt consolidation loan to eliminate high-interest credit, refinancing your home or car to get lower payments, and contacting creditors directly to negotiate more favorable terms for other obligations, like student or personal loans. Step one is contacting a licensed financial counselor. After that, the solution to your particular challenge depends on how much you owe, to whom you owe it, and what the legal options are. Here are the details to get you started.
Work With a Financial Counselor
If you’re strapped for cash, call a local social service agency, and ask them to help you locate a no-fee or pro-bono financial counselor. These professionals are the perfect first step in any approach to getting your monetary affairs in order. Even a half-hour consultation can set you on the road to a more stable life, less debt, and a well-planned future.
Consider a Viatical Settlement
A viatical settlement is a legal way for insurance policyholders to obtain cash for their life insurance contracts when they face a dire medical condition. In most cases, you can get a tax-free payout when your physician can document that your chances of long-term survival are negligible. If the concept is new to you, review a comprehensive online guide that explains everything about how viatical settlements work. One of the fastest and simplest ways to turn an existing life insurance policy into much-needed cash is to look at Magna Life Settlements. Plus, there are no restrictions on how you can use the funds.
Apply for a Debt Consolidation Loan
There are a few ways to consolidate credit card debt, but one of the smartest techniques for beating high credit-card interest is to apply for a debt consolidation loan. Not only do most applicants get approved quickly, but they find that having one payment and a reasonable interest rate makes their monthly budgeting more streamlined and less stressful. Ask your bank about these loans or search online for a specialty finance company with a solid reputation.
Refinance and Negotiate
Refinancing your home or vehicle can put a major dent in your debt profile. Frequently, a refi on a newer car or home loan can save you a significant amount in terms of monthly payments. For larger, non-home, non-vehicle loans, consider speaking directly with creditors and seeing if they will help you restructure a loan contract.