- Accept the problem. It has happened, and you can’t change it. Blaming others or yourself will not bring you any closer to a solution. Looking back and longing for the way things were will only extend your pain.
- Unburden yourself to others. Resist the urge to be stoic. Tell others what'shappened, and you won’t feel so alone. If you say, “I need help,” people often will try to help. If there's no one you can talk to in your personal life, then pleaase try and post on a site such as Beagle's. You'll be anonymous and people will not judge you, and have most likely experienced similar.
- Don’t forget to talk to your bank, credit card company, finance company, and mortgage company. They don’t want to be stuck owning your assets, and most are willing to negotiate alternative terms. However they are suffering too financially and you may have to fight to get them to accept reduced payments.
- Diagnose the impact. List on paper the tangible effects that this event will have on your life. Separate the financial impact from its emotional impact. Once the emotional baggage is separated out, the financial problems most likely will seem less daunting.
- Work out a course of action. Complete a full budget sheet, be HONEST. List all your assets , expenditures and ALL your debts. Look for expenses that can be cut from your budget.
ACTIONS
- Drive less
- Use public transport where possible
- Pay cash for groceries/ordinary household purchases, rather than credit cards
- Cut out luxuries and expensive “toys”
- Stop going to the coffee shop-take a flask
- Use coupons, look for sales, and plan your shopping accordingly; stock up
- Do your shopping at discount stores for the basics
- Use store brands in place of national brands
- Cook at home at least 25 days a month
- Take your lunch to work
- Be an energy saver; turn off lights, TV, and computers at night
- Rent movies after they come out on DVD rather than going to the cinema
- Plan your shopping and errands so one trip can hit as many stops as possible
- Ride your bike or walk for close-to-home errands
INTERMEDIATE TERM ACTIONS
- Stop trying to “keep up with the Joneses”; they’re deeply in debt themselves
- Sell stuff you no longer need or want
- Cancel non-essential subscriptions and memberships - check your bank statements for things you might have forgotten are running.
- Use energy-saving major appliances
- Negotiate to lower your rent or mortgage payments
- Get a used, cheaper or more fuel efficient vehicle, or
- Pay off your old car and don’t buy a new one, and
- Arrange to share lifts whenever and wherever possible
- Take holidays and long-weekend trips closer to home
