Miranda Tsotsoria
Sales Associate
This year has been tough on the U.S. economy, and we’ve all been feeling it -- whether at the gas pump or the grocery store, in phone calls from creditors or in worried discussions with neighbors, in fluctuating retirement accounts or in budget-related meetings at work. Whatever financial problems you’re facing, here are some tips and resources that can help.
Paying your bills
If you realize that your current resources aren’t going to cover the bills, then it’s time to talk with your creditors. First, review your budget to see what you can afford to pay. Then, call your creditors and explain your situation. Ask for a payment plan that fits your current cash flow. Most creditors will try to work with you, especially if you demonstrate your intentions to meet your obligations by paying even a small amount each month.
You might also want to contact a credit counseling agency. These agencies, which are usually nonprofit, provide personalized counseling to consumers who need to pay off unsecured consumer debt, such as credit card and utility bills. Contact the National Foundation for Credit Counseling (NFCC) and the Association of Independent Consumer Credit Counseling Agencies (AICCCA) for a list of agencies.
Here are some other resources if your situation is more serious:
- Rent or mortgage. Local nonprofit organizations may be able to help with rent and mortgage payments. Many communities also have foreclosure prevention programs. Contact the local United Way, community action agency, or church groups for more information. Again, if you’re behind on your mortgage, make sure you’re talking with your mortgage company.
- Utilities. Private and publicly-funded energy programs are available to qualifying individuals and families. Contact your utility provider to find out what assistance may be available to you.
- Medical. Contact your state health and human services department to see what resources are available to help you and your family pay for health care. Depending on your income level, you might also be eligible for federal assistance through Medicaid. If you’re trying to pay for care you received at a hospital, you can request a case manager or social worker to help you decipher bills and coordinate financial and medical resources.
Other common financial worries and what you can do
- Putting food on the table. Your local or state health and human services department or community action agency can advise you on food assistance either through distributors of free food in your community or through the federal food stamp program. And if you have a child in school, contact the school to see whether he or she would qualify for free or discounted breakfasts and lunch.
- The solvency of your bank. Check that all of your bank accounts are covered by the Federal Deposit Insurance Corporation (FDIC). The FDIC currently insures deposits up to $100,000, but if you have a joint account, the coverage is $100,000 per person per bank. Find out if your bank is covered at www.fdic.gov/deposit/index.html.
- The value of your 401(k), stocks, and other investments. Before making any major decisions about transferring or withdrawing money from any of your investments, talk with a certified financial professional. A financial professional will help you understand how the current shifts in the market might affect your financial plans and whether you should be making any significant changes. You can find a Certified Financial Planner by looking in the yellow pages or asking friends and family for recommendations. Make sure you choose a professional who is certified with the Certified Financial Planner Board of Standards.
Also, make sure your investments are secured through the Securities Investor Protection Corporation (SIPC). The SIPC works with customers of failed brokerage firms to recover up to $500,000 in cash, stock, and other securities lost during a closure or bankruptcy. Note that the SIPC does not insure against market losses.
- Your ability to sleep at night. If anxiety is keeping you up at night or interfering with your ability to concentrate at work or enjoy life, you may benefit from talking with a counselor. Contact Work-life Balance or your employee assistance program (EAP) for more information and resources. You might also want to begin limiting the amount of time you’re spending monitoring your accounts, watching TV news, and participating in discussions related to the current economic crisis. Constant exposure to negative news and speculation can make your personal situation seem much worse than it actually is. And, of course, if you’re concerned about any physical symptoms, such as severe head- or stomachaches, chest pains or tightness, or heart palpitations, contact your doctor.
Remember to take care of yourself and accept help
As you sort through your finances and look for the solutions you need, don’t forget to take care of yourself and accept help when it’s offered. The following basic tips can help you maintain your energy, strength, and perspective.
- Set aside small moments to relax, even if it’s just 10 minutes away from your job or the phone to take some deep breaths, make some tea, or go for a quick walk.
- Do your best to get good sleep, regular exercise, and healthy meals whenever possible.
- Spend time with your trusted friends and loved ones. When you’re under stress, try not to push your loved ones away even though that might be your typical defense mechanism. A kiss from your child, an embrace from your partner, a kind word from a friend, or a romp in the park with your dog can all have remarkable power to restore your sense of peace, normalcy, and stability.
Finally, remember that our web site has many other resources that can help you deal with a wide variety of real estate and financial issues; and most importantly if you have any question about your New Jersey real estate do not hasitate to contact us by phone or email.
