Sometimes things just don’t go as planned. You may have showed up everyday to work on time and were a great employee, but the business may close and just like that you are jobless. Medical bills are becoming a huge, overwhelming problem these days. A stay in the hospital can rack up huge bills. If you’ve found yourself on the edge of bankruptcy, what can you do to save yourself? Let’s take a look.
Sell Anything You Can
It can be very hard to part with some of your items, but it may be the best option. If you sell the things that you no longer use, you can get a lot of cash from them. For instance, clothes, shoes, and handbags sell quickly and easily. If you have a really expensive bedroom suite or other furniture, it may be best to sell those and replace them with cheaper pieces. It isn’t ideal, but it can save you from losing bigger items, like your vehicle or even your home.
Besides selling the items that you own, do you have a service you can sell to make extra money. Can you do lawn care? Can you care for children? Can you run errands or take care of an elderly person? Are you a great baker? If you have a vehicle, you can be a driver for Uber or Lyft. You do have a skill. Figure out what it is and do it quickly.
I know, this may sound crazy. Get a loan when you can’t afford to pay your bills? This loan should give you a little extra time to get your finances in order. If you can’t afford your home any longer, this loan can pay your house payments while the home is on the market. Keep in mind that you will have to pay for the loan, so use with caution.
Getting a loan comes with a lot of stress, especially if your credit isn’t great or even good. There are lenders that accept credit score as low as 450. If you’re credit is below 500, getting a loan can be very difficult, but you will be able to find a lender.
Reduce Your Bills
If you’re considering bankruptcy, it is time to cut out anything extra. Gym memberships should be cancelled. You can exercise in your home or outside. Make due with what you have. Cut out or reduce visits to the salon. Nails, spray tans, and waxes are out. Cable and even internet must go. You can always visit your local coffee shop for free wifi. Restaurants are a no go. Buying groceries and eating at home is about 80% cheaper. Even a morning coffee at the coffee shop really adds up.
If you have a car payment, could you sell that car and opt for a cheaper vehicle? If you have more than one vehicle, see if it is feasible to sell one and share the vehicle. If you have a big home or apartment, down size. If you have children, they may need to share a room for a while. A smaller home will also reduce things like insurance and utility bills too.
Look at your expenses and find ways to reduce them.
Ask for Help
This can be a challenge. You may think it is easier to sell everything you have rather than to ask for help, but this could be a life saver. If you have family or friends that can afford to help, reach out to them. They may be able to lend you money or let you barter with them.
Also, many churches and organizations are available to help you. You can get help with things like food and utility bills. Asking for help may be your last resort, but don’t take it off the table completely.
Remember, just because you have to get rid of things or downsize, doesn’t mean it has to be like that forever. After you get on your feet and build up a savings, you can cautiously begin to look into a larger home or add another car. Remember what led you to financial ruins and plan for scenarios like that before taking on more expenses.