When untangling yourself from the grasp of addiction, there’s no shortage of difficulties. There are lingering challenges in our family, physical, and emotional lives, but there are also practical matters of living in a fast-paced modern world. Getting back on your feet financially is just another challenge on the road to full recovery.
It’s important to recognize that re-establishing financial security takes time and patience. Be wary of the quick fix and predatory title loans or credit counseling companies that promise a quick solution. As the Washington Post reported, many of these quick fixes can often be scams or charge you for services you can do yourself.
Most importantly of all: Don’t allow financial debt to cause depression. The Journal of Social Science & Medicine concluded that debt can be an important determinant of health. When coupled, debt and depression can rapidly spin out of control and make situations worse. Stay strong and confident that financial situations have a way of turning around.
Dealing with Debt
Too much debt can cause problems as you rent an apartment, apply for credit, or even purchase a home. Debt and bills accumulate quickly, so it’s best to plan ahead:
- Avoid late payments and create a bill calendar showing the bill due date.
- Think about what debt you should pay off first. Choose the one with the higher interest or the largest amount.
- Organize and write out your monthly expenses in order to maximize every penny.
- Emergency Fund. Saving even a little for an emergency fund can help in time of need.
- Consider combining all of your debt into one payment with one monthly due date.
Managing Employment and Work History
Working helps our sense of purpose and fulfillment, but a spotty work history can certainly be a deterrent to landing a job or getting back into steady work. There are a few considerations to keep in mind when confronting this:
- Tailor your resume to what they call a functional resume, which places a stronger focus on skills rather than employment history.
- Do everything you can to build up skills and obtain experience even as you search. Put in some volunteer hours, get involved in the community, or take night classes or online classes at a community college.
- Be honest about your work history and be confident in your skills and work ethic.
Re-establishing Good Credit
Bad credit can be a difficult hurdle.This three digit number can be a heavy burden to bear. As Fox Business reports, your credit score is used by lenders to decide whether you’re a good candidate for their loan. A bad score can affect your ability to take out a loan, qualify for an apartment, or even get a cell phone contract. There are a few things you can do to try and fix your credit:
- Start by checking your credit score and ensuring it’s accurate and error free. Use one of the three main sources for credit scores: Experian, Equifax, and TransUnion.
- Understand the reports and what they mean so that you can address the problem directly.
- Forbes magazine suggests that paying outstanding bills as soon as possible can be an important step toward aligning your score.
- Reduce your credit utilization. This means to reduce the amount of credit, based on your credit limits, you’re using.
- Use small purchases to boost your score. If you have a few credit cards open, think about using them for small purchases and then paying the bill in full. Avoid taking out new credit for a little while as you boost your score.
Recovering from economic hardship can be difficult but not impossible. Everyone is susceptible to falling behind, given the many surprises life has for us. The important part is to not let it beat you and envelop you in its vicious spiral. When taking the problem head on, it will seem less menacing. If you remain consistent and hopeful, you’ll be on the road to financial recovery in no time.
Photo Credit: Pixabay