The Best Tips For Recovering With A Fresh Start On Your Finances
by: Michelle Petersen
Getting clean means a whole new you, and part of your healthy lifestyle includes better economic choices. You may not know how to recover financially, but with these tips you can make a fresh start.
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Cleaning up your finances. You’re not alone if your addiction created a personal financial downfall. According to some experts, it is not unusual to come through recovery with substantial debts, emptied savings, bad credit, possibly even a bankruptcy or lost job. It’s important to find ways to manage your money concerns. Here is what you can do.
Improving your income. You may have lost your position in the course of your addiction and recovery. The first step you should take is getting a job. Some experts feel this is a critical step in rebuilding your self-esteem as well as establishing much needed income to pay debts and rebuild credit.
Understanding expenses. Many people have trouble distinguishing how to cover wants without neglecting needs. Ask a friend to help you list your needs and your assets. You can make adjustments in your lifestyle so that you aren’t without self-care. For example, if you are craving companionship you can invite a friend over for a meal, when in the past you would have made it a night out.
Create a budget. Once you have a reliable income and understand your expenses, you can create a realistic budget. This will help you to successfully manage your money. First tally your entire monthly income, then tally your monthly expenses. Count all of your bills throughout the month, including utilities, transportation, rent or house payment, groceries, debt payments, entertainment, and savings. Take the necessary steps to ensure your income is greater than your minimum expenses each month. For example, you may need to move to more affordable housing, or you may need to cut your cable bill or purchase a less expensive phone plan.
Credit and debts.
Repair your credit. Take steps to repair any damage that your credit has endured. According to experts at The Balance, this is something you can do yourself.
● Credit reports. Start by getting your credit reports. This will tell you exactly where the damage is that you need to repair. Review all the information, making sure there are no errors in your reports.
● Errors. Dispute any errors in accordance with the guidelines included on the reports.
● Late and unpaid accounts. Pay back any delinquent accounts. You can contact creditors on the delinquent accounts to see if they will waive fees, reduce payments, or re-age debts to make them appear current. Talk with the institutions about what can be done.
● Payments. Make your payments to creditors on time. Stay away from payday loans or other high interest loan services.
● New credit. Once your credit score improves, apply for credit. Don’t apply for more than one or two accounts with major credit card services. If you are denied, apply for a secured credit card.
● Bankruptcy. If you need to declare bankruptcy, sooner is better than later so you can start rebuilding.
Get help. If you are overwhelmed, some experts suggest reaching out to a financial counselor. Many of these professionals offer discounted or free consultations.
Why it’s all so important. According to the experts at Psych Central, not taking control of your finances creates stress that could lead to a relapse. Behind much of the major stressors that can be stumbling blocks to your recovery is the uncertainty created by unstable finances. When your money situation is precarious, your relationships and lifestyle can become precarious.
Your fresh financial start. Taking control of your finances is a part of your healthy lifestyle. Create a realistic budget and tend to your credit and your debts. Improving your financial situation will help you avoid triggers. Get a fresh start financially to maintain your recovery.
Article by: Michelle Peterson