Sometimes it takes just one unexpected setback or emergency to trigger a debt crisis. It is normal for some people to have feelings of loss and doubt after a less-than-positive life experience. However, it is important to move ahead and find ways to get back on your feet again. Here are a few tips on how to stay proactive if life throws you a curve.
Natural Disasters. Your local branch of the American Red Cross could provide you with basic needs such as food and clothing immediately following a disaster. Visit www.RedCross. org for more information. In addition, The Federal Emergency Management Agency offers many assistance programs to those affected by disasters. Visit FEMA.gov and click on “Disaster Survivor Assistance” at the top to learn more about the program. It would be wise to make a list of all relevant numbers and contact information. This should include checking, savings and credit cards numbers, as well as insurance policy numbers. If possible, invest in a fireproof lock box where you could store this list along with copies of important documents such as your driver’s license, social security card and insurance policies. It is a good idea to keep everything filed and organized in case you need to get to the information quickly.
Losing A Job. If you experience a job loss, it would be a good idea to quickly begin taking action. Try visiting the Department of Labor at Dol. gov (866-487-2365) to learn more about unemployment benefits and to search lists of unemployment offices according to state. Also, you could review your employer’s severance benefits, including the temporary continuation of your health insurance under COBRA. You might also want to explore your options under the Affordable Care Act. In addition, you might qualify for the Health Coverage Tax Credit (HCTC). Go to Irs.gov and do a key word search for HCTC for more information and to see if you are eligible.
A Medical Emergency. Since mistakes can happen, it might be wise to review all doctor and hospital bills and insurance claim payments/denials. If you find a discrepancy on your bill and cannot resolve the dispute with a doctor, hospital or insurer, you might want to contact your state consumer protection office or insurance regulator for guidance. Try to keep all bills, cancelled checks or other receipts in one place so you know where they are for tax time for your tax preparer in the event you may qualify for tax savings.
Death Of A Family Member. Try to locate important documents, such as insurance policies, as well as an original copy of the most recent will. It is a good idea to make multiple copies of the death certificate, which will be needed to apply for death benefits (such as through life insurance policies or Social Security) and to access bank and other accounts.
Divorce. You may have to consider making some important financial changes if a divorce occurs. When it comes to spending, recognize that living your old lifestyle may not be possible on one salary. According to Kiplinger.com, you should also consider updating your will and the list of beneficiaries you designate on life insurance policies at this time.