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Guard Your Credit in a Financial Crisis

In an unstable economy, the sudden loss of a job can create a financial crisis. When faced with lost income, there are several steps you can take to protect yourself and your credit.

Stop Using Your Credit Cards

The last thing you want is to end up deeper in debt, particularly when you don't have your regular flow of income. And you do not want to count on being able to pay back any additional debt when you get another job. In a rocky economy, there is no guarantee that you will find another job at a comparable income level or even a job at all for quite some time.

Take Stock of Your Situation

Next, examine your current credit card damage. It is important to have a firm grasp of exactly who you owe, what you owe and under what terms. Be sure to make at least the minimum payments each month and never avoid your creditors. No matter the circumstances, it is crucial to always stay in contact with them to avoid landing yourself in trouble with a collections agency. Keep your credit card companies and other creditors informed of your situation and ask them how you can work together to continue paying your debt. Creditors may be able to offer you a grace period or some other protection, particularly if you continue to make efforts to pay and stay in contact with them. This is something that the credit counselors at Advantage CCS can help you accomplish. We can negotiate payment plans directly with your creditors to help you take charge of your situation.

It is also wise to reexamine your spending and finances during a financial crisis. Start by cutting any and all unnecessary spending such as trips to Starbucks, meals at restaurants or nights out with friends. Even the smallest daily luxury expenses can add up quickly. If sticking to a budget is hard for you, Advantage CCS can help you learn how to create and stick to a budget.

Raise a Little Cash

Take the opportunity to clean your home and make some money in the process. Gather up any items you no longer use or need and have a yard sale or start posting on Craigslist or eBay. If you feel you need a loan to get you over the hump, you may want to consider borrowing money from friends and family. They won't require a credit check and the repayment terms will most likely be much more flexible and manageable than a loan from a financial institution.

Finally, make an appointment with a credit counselor at Advantage CCS. A credit counselor can help you come up with possible solutions and a plan specifically tailored to your situation and needs to get you back on your feet and guard your credit.