Since 1992
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By Tracy Collins
Two steps forward and three steps back. This is how it may feel when you are faced with a financial setback.
It is extremely difficult to stay ahead in today’s world, especially if the unexpected happens. With ever increasing food, fuel and everyday living expenses, how do you save for the unexpected so that you may stay financially healthy at all times? How do you handle unexpected financial setbacks when they do occur?
Fear, depression and avoidance are common ways to handle financial difficulties, but it doesn’t have to be that way. Taking control, making a plan, and asking for help are the best ways in which to deal with financial setbacks.
The following are some ways to make your financial world easier to manage and produce positive results:
* Track Your spending — If your budget continuously comes up short or you lack enough to save for setbacks should they occur, take a week or two and log all your purchases and spending. This will highlight areas draining your wallet. You just might be surprised how much you’re spending in a week on non-essential items.
* Make a priority list — Sit down and make a list of all your “must haves.” Make sure to include the due dates or weekly expense for each. This list should include housing, utilities, and any expense needed to secure a roof over your head. Account for a vehicle, gas and related travel expenses so you can make it to work to earn that next paycheck. Also, debts with monthly payments, such as credit cards or loans should be listed. Keeping these on track will ensure no added fees, increased interest rates, or aggressive collection action. Food and personal items also will need to be calculated. Be honest with yourself; it’s your list.
* Construct a plan — Your priority list will allow you to start making a financial plan. Now that you know what needs to be paid and when, start budgeting individual debts weekly or biweekly, depending upon your pay schedule, and begin saving for times of financial difficulty and setback. It helps to make a plan on paper. If you see it, it will happen.
* Talk about it — If, after making a plan or when a setback occurs, you are coming up short, be open and honest about it. Every credit union, bank and utility company has a debt resolution or collections department. People are in place to help you. Making contact with these people will ensure a productive working relationship. Most have programs or ways in which to make it easier for you to make payment. Establishing an open line of communication is a great way to work through budgeting shortages, past due balances and avoiding aggressive collection action. We all know how hard it is in today’s world, and it is okay to ask for help.
* Debt-management companies — There are companies that extend their services to help you create budgeting plans. Be sure to research which company you choose to work with. One trusted company is Money Management International. This company has offices in Portland and may be reached at 1-800-706-1975.
Your credit union encourages a proactive approach to financial hardship and setbacks. We understand the stresses of life and that there never seems to be enough to go around. We are always ready and willing to help you. Contact us to answer questions and discuss your individual financial needs.
— Tracy Collins is the financial resolutions officer at Lisbon Community Federal Credit Union, 325 Lisbon St., Lisbon, and 802 Sabattus St., Lewiston.
