Financial stress can be a very uncomfortable issue to deal with. The process of regaining financial control seems like a steep climb but as with any problem, finding guidance with your financial hardship can provide the framework towards regaining control.
If you're struggling to pay your bills every month, you might be dealing with a financial hardship.
What is a Financial Hardship?
A hardship can be defined in a few different ways and usually depends on a number of factors. Typically, a hardship refers to a situation in which you cannot keep up with your financial obligations due to a circumstance that is beyond your control.
What Causes a Financial Hardship?
There are many reasons for a financial hardship and more often than none, they happen to be a result from an uncontrollable life circumstance. Some of the common reasons for a financial hardship include:
- Loss of job
- A cut in hours or pay
- Divorce of death of a spouse
- Injury or medical illness
- Unexpected events/family matters
There are also a handful of identifiers that can serve as a warning that you may be headed for financial distress such as:
- Not making the minimum payments on financial obligations
- Continuously making late payments
- High credit utilization (high credit balances)
- Using services as payday loans and/or cash advances
- Using credit to pay for daily essentials
- Lack of emergency funds
Acting on the warning signs will serve as a preventative strategy that will allow you to plan, organize and eliminate the possibility of falling into a financial nightmare. Simply doing the corrective measures of the previous mentioned warning signs will place you into a better financial position.
What To Do
If you experience a sudden change of income, it is often recommended to create a baseline budget that will cover all of your priorities. Writing out your priorities, in order of importance, and labeling them as such, will provide understanding on which priorities have a certain amount of flexibility. While it is never easy, making the needed budget cuts will allow you to keep the baseline income flowing into your priorities.
Speaking to your lender/financial institution about your specific circumstance will help determine the best solution for you and can provide some financial relief when it’s needed most. There may also be other programs and resources in your community that could be taken advantage of.
SafeAmerica Can Help
As a member of SafeAmerica Credit Union we have resources available to assist you.
Begin the process of a healthy and stress-free financial way of living through our nonprofit partner, GreenPath Financial Wellness. They can assist with:
- Creating a debt management plan
- Financial Counseling
- Housing Services
- Student Loan Counseling
- Credit Report Review
- Financial Education
Financial hardships are deemed as a last resort resource and are not structured to be supplemental to any variations of money saving methods. To increase the possibility of being accepted for a financial hardship, one should be able to provide details and/or documents from resources they took advantage of before making contact for a financial hardship.
If you need insight, guidance or a plan of action with your SafeAmerica Credit Union loan, our collections department is available at CollectionsDepartment@safeamerica.com.