Plan Ahead: Coping with Financial Crisis

Are you Ready?
Unforeseeable events can occasionally create situations in which it is impossible to remain current with all your debts. They may include employment disruption, loss of second income, health issues, substance abuse, marital problems, family tragedy, misuse of credit, lack of budgeting and gambling problems.

What do you do now?
An evaluation of your financial situation may reveal that one or more of the following options are open to you to help you get back on track.

• Deal with the underlying cause and inform all your creditors immediately of your circumstances
  If it is employment disruptions due to health issues, be sure to check with all of your creditors to see if you purchased disability insurance. In most cases, for qualified claims, the insurance kicks in after the first 30 days and covers your payments until you are able to return to work.
  
  If it is employment disruption due to a strike, check with creditors to see if they will defer payment or allow interest only payments (for those who apply, The Credit Union will defer payments, until the member is back to work and receives their first pay).
  
• Look into the possibility of debt consolidation
  One loan payment is much easier to handle and it’s almost always at a significantly lower rate than credit cards. Once you’ve cleaned up those debts, avoid using multiple credit cards again.
  
• Establish a line of credit for emergency use It’s similar to having a credit card but at a much lower rate.
  
• Improve your budgeting The Credit Union will happily work with you to establish a workable plan.
  
• Seek out support through an employee assistance group It really can make a difference.

Each financial crisis is unique. The Credit Union always offers an open mind and an understanding ear. We can assist you in assessing your situation and help you determine the most appropriate course of action. When the going gets tough talk to us first. We’re here for you!