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• By Kevin Alvarez

What to Know About Financial Hardships

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

Common Signs

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.

Financial Hardship

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
GreenPath Financial Wellness

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.

Important Links

GreenPath Financial Wellness
Foreclosure Prevention Strategies
Financial Hardship Assistance

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.

• By Kevin Alvarez

How to Plan for Back to School Expenses in a Time of COVID-19

Information brought to you by our partner, GreenPath Financial Wellness

As families track the latest news about their communities K-12 reopening plans, it’s clear this is a school year like no other – especially as families plan for back to school expenses.

Will students return in the classroom? Will a K-12 student school year involve a mix of online and in-class learning? Or will school districts mandate that the school year be online, virtual learning?

A national organization that monitors retail activity shows that households tentatively plan to spend a record amount to prepare students for school and college. If districts aren’t providing laptops, many families will buy laptops and computer accessories in anticipation that at least some classes will take place online because of the coronavirus pandemic.

The retail survey shows that parents with children in elementary school through high school anticipate spending an average of $789.49 per family, topping the previous record of $696.70 they said they would spend last year.

While it isn’t a typical year when it comes to back to school shopping tips, with the right information, families can reduce their stress.

6 Steps to Plan for Back to School Expenses

The good news is that with a little planning, you can successfully manage additional expenses even in the midst of a pandemic.

As you plan for back to school expenses, shared here are six steps you can take.

1. Check in with your school district.

Whether preparing for online or in person, be sure your spending plan reflects what technology tools might be needed. Watch the news or local websites to keep tabs on what your district is planning for back to school. Check with your district if they will be providing school-aged children with laptops or other technology.

2. Think about your spending plan.

The pandemic has changed household finances, given unexpected loss or changes in monthly income. GreenPath’s budgeting worksheet is a great way to get a handle on the situation in terms of tracking income against expenses. Once you have a good handle on your current financial state, determine how much you truly feel comfortable spending.

3. Is it a “want” or a “need?”

Prioritize your needs list. What do you need to buy before school starts and what can you purchase later?

When thinking about virtual learning, does the family already have access to high-speed internet and a family computer, or are these items that need to be purchased? Will your district provide needed technology? What really needs to be replaced or what can be reused?

If new clothes are a need, watch for sales or online stores offering the most competitive pricing.

4. Avoid impulse buys.

Whether heading to the computer store to support online learning or buying a new backpack, stick with the plan.

Make it a family affair. Write out the shopping list together. If the kids want something that isn’t in the budget, offer them the option to chip in their own money.

Look at school shopping as an opportunity to get kids more involved or even suggest spending more of their own money on back-to-school supplies.

5. Watch those credit card balances.

If you use a consumer credit card, keep a close tab on the balances. This can be a simple process of assembling printed receipts in an envelope after each shopping outing. That way you’ll have a clear reminder of the credit card balances as they are incurred.

6. Consider teaming with a helpful resource.

Families looking for additional support before they head to the stores this fall have another option.

GreenPath’s professional, caring Financial Wellness Experts will assist you in assessing your financial situation and guide you to create a personalized plan to achieve your goals.

GreenPath works with thousands of people each week to pay off debt, improve credit, and lead a financially healthy life. When looking ahead to an uncertain school year, it’s helpful to start a conversation with a GreenPath a Financial Expert.

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