How to deal with a financial crunch

No matter what your financial situation before being diagnosed with a life threatening condition, you will experience a decrease in income. It is better to start planning for those situations now than to wait until you are feeling the stress. There are some things to think about and do now.

1. If you do not have a monthly budget, create one. There are some good financial planning software products you can use that will help you get an idea of your net worth and produce a cash flow statement. This is important because you need to know where you are right now in your finances.

2. Look at your income. Consider will your income be decreasing, how long is it anticipated to be decreased.

3. Look at your expenses. Are there areas you can cut-back now in order to save money. Start trimimg the fat off your expenses.

4. Do you have investments, or life insurance that you could borrow against if necessary? If so, get the paperwork and start getting it completed now in case you need it in the future.

5. Do you qualify for disability? Contact the Social Security Administation and get the paperwork filled out now. This process can take awhile, go ahead and get started.

6. Do you qualify for other types of state or federal assistance? Contact the Department of Human Services apply for food stamps, medical assistance, daycare assistance, etc.

7. Concentrate on your necessity bills and pay those first. In other words, prioritize your debts. First things, firs...... keep the mortgage or rent paid, utilities on, food and transporation needs covered. Then you pay what you can on other bills such as credit cards, medical bills, etc.

8. Contact creditors and see if they can give you an emergency extension. Sometimes they can post pone payments on mortgages, car payments, credit cards, etc for several months and tack them on the back of your loan. This helps buy you some time. Dont' wait until they have sent you to collections, go ahead and talk to them now. They are usualy willing and able to help if you will give them the opportunity.

9. Contact local agencies and organzations that may be able to provide financial assistance to help you. Your hospital Social Worker or Case Manager should have resources available to help you during this time. Aks for help.

10. If you are a member of a church, call and ask if they have any funds available to help members during crisis. Most times they have funds for these specific situations and are happy to help.

In later posts we will discuss how to negotiate with creditors, getting approved for Social Security Disability and others. Stay tuned!