When it comes to personal finance, working adults face all sorts of temporary and long-term challenges. There are dozens of unexpected circumstances that complicate life at any given time. Most of these dilemmas are closely related to lack of funds or the imminent threat of losing money. Finding out that your credit score is not up to par, realizing that the once-large savings account is rather slim, receiving notice of a layoff, or being the victim of identity theft are four of the most common problems consumers face every day. Here’s a look at each circumstance and what you can to do prevent them, deal with them, and get on with your life.
Weak Credit Scores
The best way to prevent suffering a decline in your credit rating is to pay every bill on time, not borrow too much, and remain employed. There are other factors that go into a rating, but if you keep a close eye on those three, it’s possible to prevent problems from arising. If you do discover your scores are lower than you thought, be patient as you work to repair your credit. First, obtain all three reports from the major bureaus and go through them with a credit counselor. Contact creditors and make a play to repay any late payments. Get caught up on back taxes, and continue paying all bills on time. Expect to wait at least six months before your numbers start to go up again.
Short-Term Lack of Funds
It’s impossible to prevent the unexpected, so the wise approach to emergencies is simply knowing what to do. If you need cash in a hurry and don’t want to fill out long application forms, and wait for days or weeks to get funds via a bank loan, consider a payday loan. Applying is a simple, fast process because you only have to verify your employment and income. After that, funds are transferred to your bank in a matter of minutes. Plus, you can find the best payday loans online and apply as soon as you decide to move forward. For financial emergencies, this is probably the smartest way to gain access to funds in a short period of time.
Being fired or temporarily laid off can be a major catastrophe for anyone. Is there any way to plan for a job loss? One method is to build an emergency savings fund consisting of approximately three-months’ salary. Another is to always keep your eye on the job market and know what kind of openings exist in your field. Networking and constantly updating your resume are the two best weapons against the negative effects of a sudden job loss. Don’t expect unemployment benefits to get you through. Start saving and planning now for the possibility, no matter how remote you think it is.
If someone steals your identity, you face the very real prospect of having no access to credit or borrowing for several months, until the situation is sorted out. One of the best preventive measures is having a large amount of savings on hand to get you through. If you suffer an ID theft, speak with an attorney to learn about the fastest remedies, because every situation is different.