How to tackle financial stress

1. Identify what needs the most attention. Write down your three biggest money challenges so you know what you’re up against.
2. Try to stay positive.
3. Be realistic.
4. Make the most of your income.
5. Small steps are key.
6. Keep yourself honest.

What is a personal financial crisis?

A personal financial crisis can come from many things — a lost job, a divorce, bankruptcy, a sudden medical emergency, or any situation in which your financial security crumbles beneath you. While enduring a financial crisis may be challenging, know that you can regain your financial stability once again.

Is a credit card a creditor?

In many cases, a creditor is a bank or other financial institution, such as a credit union. Credit cards are an example of an unsecured creditor. Secured debt is backed by collateral, such as a home (mortgage loan), vehicle (car loan) or any property that the debtor is purchasing with funds from the lender.

What happens if a family member is in financial trouble?

The lender can take legal action against you and require that you pay the full amount, even if you had an agreement between you and your family member that you would not have to make payments. This delinquent loan will also now affect your personal credit.

How to overcome your financial problems for good?

To overcome financial problems and solve your difficulties for good, you need to determine what your priorities are. Some might be clear-cut financial priorities, e.g. to pay off your credit cards. Others might be lifestyle-goals, based on your values, e.g. save up for house repairs so that your family has a nice place to call home.

Why do some people fall into financial difficulties?

Often people fall into financial difficulties if they experience the sudden loss of a job or are impacted by expensive medical bills. Many well-meaning family members have found themselves sucked into the financial abyss by the problems of a loved one.

What are the different types of financial problems?

Some might be clear-cut financial priorities, e.g. to pay off your credit cards. Others might be lifestyle-goals, based on your values, e.g. save up for house repairs so that your family has a nice place to call home. Setting clear priorities for yourself makes it easier to make tough financial decisions.