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Step 1
First and foremost sit down and take financial inventory. Why are you in the current money crisis. Are you underemployed. Do you need a source of additional income? Is it simply a one time event that you need to get beyond. What is the root cause of the problem. If it is a car breakdown or home repair emergency could better maintenance have been cheaper in the long run and helped avoid such emergencies in the future.
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Step 2
List your expenses and decide which must be paid first. Mortgage, utilities, car payments and food take priority over unsecured credit card debt. If you miss your house payment they take away your house. If you miss a credit card payment they take away your charging privilege and may add fees. When you know you must pay high priorities and food first and money will not be available for a credit card payment call and make arrangements. Many credit cards and even your utilities have the possibility of differing payment or stretching out terms to help you through a temporary crisis. If you don't call and explain they will not work with you as readily. Make contact and see what help is available. ASK!
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Step 3
Find extra cash to help you through a one time crisis. Take a part time temporary job through a temporary services company. Hold a yard sale. Sell some antiques or collectibles. Cash in stock or savings bonds if it makes financial sense. Do what it takes to raise some quick cash and pay the bills then focus on the long term. See about a loan from your bank, credit union or a relative. Avoid the trap of high interest payday lender and pawn shops. High interest and more debt will never solve the problem.
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Step 4
Once you are beyond the immediate crisis plan for the future. Can you increase your income? can you cut expenses. Find ways to set aside money each pay check in a separate account so you can avoid a financial dilemma in the coming month and take care of any one time set backs with savings.
