Five Tips to Sort Out Your Financial Situation - "bad Credit" Advice

Yes, we all remember, it started in the end of 2007 or beginning of 2008 when we all started to feel the bite of the global financial crisis. I don't want to write about the bankers losing their commissions, I want to talk about the ordinary middle-class people who got into the situation they had never experienced before and had to face challenges they were not ready to face yet. Families and budgets were hit and smashed into pieces because people were not prepared. Is there a way out? They say the financial world has already hit the rock bottom, and going upwards. But what happens to millions of families worldwide who are trapped in bad credit and lost all their savings or security.
If you are one of those people trying to find tha way out of the dead end, I have ten tips for you to pick yourself out of the water like Baron Munchausen.

Financial tip No 1

Don't bury your head in the sand! That's the worst thing to do. It is hard to face the facts I know but just get it over! Make a realistic list of your current income and outgoings. Ask yourself how much of the outgoing money is for credit cards, loans, mortgage payments. If your income is well below your outgoings there are two things you can consider: Reduce your outgoings or increase your income. Now, if you got into this situation because you had lost your job, it is easier said than done. Follow the next tips to see how you can still overcome the obstacles.

Financial tip No 2

Try to reduce your outgoings. Your family needs to eat, drink and live. So you have to keep on paying your bills, mortgage and buy food. But is there anything else in the budget that you used to be able to afford, like season tickets or golf club membership? Or are you still paying for your timeshare, although you don't have much chances in the next few years to get out there and take a relaxing vacation? Eliminate any unnecessary memberships, subscriptions and recurring payments that are not serving plainly your survival.

Financial tip No 3

Talk to your lenders. Communication is the key. Call your bank manager or adviser, tell them honestly about your situation. Remember what D. Trump did at the edge of bankruptcy? He sat down with them and said to them: look, if you file bankruptcy I won't pay you, so you will lose your money. Maybe there's another solution for you. You can always ask for reschedule, lower payments for a while, or not to pay interest for x months. Companies don't want you bankrupt, especially mortgage companies, they will never get their money back in case of foreclosure.

Financial tip No 4

Talk to financial advisers. Loads of them offer free debt consultancy, give you advice and help you find the right solution. In the end of the day you cannot be an expert in every aspect of life. Don't be afraid to ask for help. These people are experts on their fields and you can use their services if you need to.

Financial tip No 5

Are you owed tax back? Your financial adviser can look into it for you. Loads of people have no idea that they forgot to claim back their taxes. There are also companies that specialize in tax refund, it is worth to have a chat with them, to see if they are able to find a loophole and get you a refund.