Monday, January 9, 2012

Debt Management and Family Crisis

A family crisis can be caused by many things. A job that was thought to be secure can be lost. Sickness and accidents can happen. An older parent can require care. Lots of things can happen that are beyond your control, and certainly not your fault, but that can put you in a financial bind.

A decrease in income has the same effect as an increase in out-go. There is the inevitable shortfall. Maybe the shortfall is temporary and you can see the light at the end of the tunnel. Maybe there isn't a light at the end of the tunnel and you really can't say just how long this financial crisis is going to last.

What you can do to get yourself and your family through a really rough spot financially will depend greatly upon how you have handled your finances before. If you have always paid your bills on time and in full each and every month you will find that your creditors are going to be more than willing to work with you and actually help you survive your crisis.

The first thing to do is to contact each creditor yourself. This should preferably be done before the first payment is late. Explain the situation and you will likely find that your creditors will allow you to just make interest payments only and that it will not do any harm to your credit score. This is the first and best option.

If your family crisis is going to continue for more than a few months, then you may need to seek some relief through a consumer counseling agency or through a debt management company. You might even consider the possibility of a debt consolidation loan.

Whatever course of action that you choose, it is far better for you to initiate it and to do so as early as possible before any damage is done to your credit score.

Milos Pesic is a professional Debt Management consultant who runs a highly popular and comprehensive Debt Consolidation web site. For more articles and resources on debt management, debt consolidation programs, free debt counseling and much more visit his site at:

=>http://debt.need-to-know.net/

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