Dealing with a Short-Term Credit Crisis
A short-term financial crisis is a situation where
you expect to be able to bring your debts to current
status within 60 to 90 days. Your goal is to keep your
credit and credit rating protected while your recover.
General Strategies:
- Increase your income – Get a second job.
- Reduce expenses - Evaluate your budget. Are there
expenses that can be reduced or eliminated, even for
a short period of time? If so, implement the changes.
- Converting assets – Consider cashing in things
like bonds or stocks, and selling a vehicle or other
assets you may rarely use.
Credit Card Payment Strategy
This strategy is intended only for short-term use.
You want to persuade your creditors that you're operating
as usual and preserve your credit rating.
- List all bills, due dates and grace periods.
- Pay bills at the end of the grace period.
- Pay only the minimum amounts due.
- Don't charge anything on credit cards that are
due in full in 30 days, such as American Express or
Diners Club.
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