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Six Important Steps to Take When You Are Desperate for Money

July 30th, 2012

money-bag.jpgWith the hard economic times that so many people in the world are facing today, you could easily find yourself in a situation where you are desperate for money. Before you start looking at crazy schemes to earn money fast or decide to rob a bank, there are six important steps that you need to take in order to ensure that you do not create even more problems in your attempt to get out of your current money crunch.

1. Stop and take a deep breath. You will not be able to resolve your problem in a positive way if you are not calm and thinking clearly. When you are desperate for money, you could easily go into “panic mode”. When you operate in this mode, you are less likely to solve the problem, and more likely to make it worse.

2. Evaluate your situation and determine your exact financial needs. How much money do you need, and how soon do you need it? Additionally, you should consider whether you actually are desperate for money or not. For example, if the cable company is threatening to cut your paid television services, this should not be considered a “desperate situation”. However, if you need the money to keep a roof over your head or to feed your children, you are actually desperate for money.

3. Think about worst case scenarios and create a backup plan. What is the worst thing that will happen if you do not get the money at all, or if you won’t get the money by a specific time? What will you do if this happens? For example, you are facing eviction, so the worst thing that will happen if you do not get the money by a specific time is that you will, indeed, be evicted. Create a plan of action that you can take in the event that this actually happens. Who can you stay with? What will you do with your household items? Sometimes, just seeing that the world won’t end if you don’t come up with the funds that you need takes a great deal of weight off your shoulders.

4. Look closely at what you already have and what you can do. Do this before you start seeking help from other resources. Can you sell something quickly to resolve the situation? Can you have a yard sale to raise the money that you need? Can you get a temporary job or do some odd jobs in your neighborhood or community?

5. If you have done everything in your power to get the funds on your own, the next step is to turn to family and friends for help. This can be embarrassing and uncomfortable, but sometimes it just cannot be helped. Think about how you will approach them, and when you do ask your loved ones for a personal loan, have a repayment plan to present them as well. They will want to help if they are able to, but showing them your intent to repay will make them feel more comfortable loaning you the money as well.

6. Avoid making a bad financial situation worse. You can get a high interest loan, and this may resolve your situation today, but what kind of financial situation is it going to create for you in the very near future? You can pawn things to get the money, but you will pay a great deal more than you gained when you return to the pawn shop to redeem your items. You are better off selling those items for a fair price. You can get a payday loan or even search for loan sharks online, but how is that going to affect your financial situation when your next paycheck won’t stretch far enough because of that loan? It could become a vicious cycle easily, causing even greater financial problems.

Once you have resolved your current financial problem, take the necessary actions to ensure that you do not find yourself desperate for money in the future. Evaluate how you got into a bad financial situation, and think about how it could or should have been avoided. With that information, develop a sound and realistic plan for your financial future.


This article was supplied by Shyley MacFarland from Constant Content.


5 Responses to “Six Important Steps to Take When You Are Desperate for Money”

  1. comment number 1 by: Vikky

    I’m doing some research who is the author of the Civil War Essay: What they fought for?

  2. comment number 2 by: Karlonia

    @Vikky:

    That would be me (Karl Erfurt), the owner of this website. I believe you are referring to this post:

    http://www.karlonia.com/2007/04/29/civil-war-essay-what-they-fought-for/

    Thank you for your visit. :)

  3. comment number 3 by: john

    Looking for private money lender.needs £10000 by Friday.can pay bk £500 a month.anyone help.please contact me on 07502304991

  4. comment number 4 by: Glenda Woodard

    I have been trying to get a loan (not a paydayloan) for 3 months now and I just keep getting the run around or they want money up front for insurance or state to state transfers, I thought the reason you were getting a loan was because you needed money not to give money, or maybe I don’t know how things work anymore. I just wish some one would tell me where to go to get a loan without money up front and for poor credit, I am getting more and more angry every day I have to keep applying over and over again for the same thing. So please someone help me.

    Thanks Glenda Woodard

  5. comment number 5 by: Tracy

    I’m in a very bad place I was off work for a month due to back injury work relate the problem is there fighting me on it so my bills got behind an with Christmas a week away I’m scared I’ll get a check the 23 I’m in need of 2500 loan I just get scamneed I’ve lived at the same place for 28 years had the same job for 5 I can repay 400. A month back plz help

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