|
 | Debt Consolidation |
| Services We Offer |
| About Auriton |
| Learning Center |
| Financial Tools |
| Current Clients |
| Tax Deductible Contributions |
About |
| Debt Consolidation Program |
| Credit Card Debt |
| Debt Consolidation Loan |
| Bankruptcy |
| Debt Collection Activity |
|
Free Consultation
Call Toll Free
1-877-332-8700
Current Clients
Call Toll Free
1-800-831-3983 |
|
Quick Clicks |
| Free Consultation |
| Contact Us |
| Helpful Links |
| Add Your Link |
| Quality Policy Statement |
| Privacy Statement |
| Site Map |
| Home |
|
|
Auriton makes Best of Web under Debt Management
|
|
|
|
 |
|
"Helping restore financial balance to people's lives"
A 501(c)3 non-profit organization
|
 | Financial Crisis |
Back
|
|
|
The Lifecycle of a Financial Crisis
Are you heading for trouble with credit card debt and other kinds of
debt? No one ever intends to become bankrupt, but over one and a
half million Americans file for bankruptcy every year. If you are
experiencing a few financial problems today, you could be in the
early stages of a financial crisis. While every situation is different,
the financial crises that strike most people follow a recognizable
pattern. The purpose of this article is to illustrate the lifecycle
of a financial crisis so you can recognize if you are heading for trouble.
The Early Stages
Five signs that you may be in the early stages of a crisis.
If you can relate to any of these warning signs, you may be in the early
stages of a financial crisis. You still have time to make changes and avoid
major problems, but you need to act now.
Even if it makes you uncomfortable, talk honestly with your family about
finances. If you aren't happy with your current situation, decide on a few
positive steps your family can take. Everyone except young children should
make some sacrifices and play a role in decisions that are made.
Action Steps for the Early Stages
Step 1 Pay off the balance on one of your credit cards and cut up the
card.
Step 2 Eliminate one or two regular costs that are nice, but not necessary.
That might be gourmet coffee, expensive meals in restaurants, new clothing
or just about anything else that is nonessential.
Step 3 Write checks or use a debit card for most routine payments such as
the grocery store. The money you spend will seem more real if it comes out
of your account a few days later.
Step 4 Set up a special account at your bank or credit union where you will
save money. Have a certain amount automatically transferred each month from
checking into that account. You won't have to think about it and you won't
miss the money. It will be allowed to gradually accumulate.
The Middle Stages
Five signs that you may be in the middle stages of a crisis.
If any of these signs sound familiar, you have two choices: you can take
action right now or you can try to forget about it and face a possible
full-blown financial crisis.
Action Steps for the Middle Stages
Step 1 Form a plan with your family for paying off debt and reducing
spending.
Step 2 If you are unable to make a payment, call the creditor and explain
the situation. Unless it's a regular occurrence, most creditors will be
reasonable.
Step 3 Don't put your credit card statements away. Post them on a bulletin
board to motivate yourself.
Step 4 Pay off the credit card balance with the highest interest rate.
Step 5 Talk to a credit counseling agency. A counselor will listen
carefully and suggest solutions that might work for your situation.
The Late Stages
Five signs that you may be in the late stages of a crisis.
It's likely that you are in the late stages of a financial crisis and major
actions are required to change your life. The stress of a financial crisis
can lead to increased instances of marital problems, divorce and health
problems related to stress.
It is strongly recommended that you talk to a credit counseling agency about
a plan for getting back on your feet. The counselor may recommend a debt
management plan that would allow you to make a single monthly payment. The
agency would then make payments and handle all communications with your
creditors.
In the most serious cases, bankruptcy may become necessary. However, most
people can avoid bankruptcy and successfully rebuild their lives.
Action Steps for the Late Stages
Step 1 Call a credit counseling agency and talk to a counselor.
Step 2 Work with a credit counselor on a plan to gradually fix your
problems.
Step 3 Cut up your credit cards.
Step 4 Talk to your family about exactly what is happening.
Step 5 Remember that it will take time to fix your problems (most people
can eventually pay off their debts in 3-5 years).
Financial problems usually start slowly, caused by too much spending and too
little saving. Unchecked, these problems can gradually turn into a financial
crisis. If you recognize any of the warning signs listed in this article,
you should take immediate steps to change your behavior and fix the
problems.
You can break the pattern of a financial crisis, but you need to be willing
to admit the problem and take action today.
Contact Auriton Solutions toll-free at 1-877-332-8700.
|
Back
|
Copyright
© 2003 Auriton Solutions All Rights Reserved
|
|
