The current health crisis has made it difficult for many businesses to keep their doors open and for workers to keep their jobs. If you are one of the many people dealing with financial issues, you should avoid common mistakes in the way you spend, invest, and save. Unfortunately, even the smallest mistake can make your economic troubles more painful--paving a steep road to recovery. Our attorneys have put together common financial mistakes people make during a recession to help your financial situation.
If you are struggling financially and don’t think you will make ends meet, our team at Hurtik Law & Associates can help you. Contact us today at (702) 323-5750!
#1: Ignoring Your Credit Score
A common mistake that people make is not paying enough attention to their credit score. Your credit score is a valuable asset to lower the interest rate on your mortgage and credit cards. Even during difficult times, it is important to make payments on time and not max out credit cards. A good financial history can help you avoid financial problems in the future.
#2: Keeping All Your Subscriptions
Keeping all your subscriptions is another mistake people make when they are facing financial issues. Most people keep their subscription bills on autopay. Your subscription payments may be out of sight, out of mind, but you could be saving money if you cancel the ones you could live without.
#3: Refusing to Use Your Emergency Fund
If you have an emergency fund and are struggling financially, it may be an excellent time to use it. Many people prefer to live uncomfortably than tap into their emergency funds, and others have so much in the emergency funds that they don’t use that money to invest or grow their money. Don't be afraid to use your emergency fund or to invest some of it.
#4: Failing to Negotiate Debt
A common mistake that people make during a recession is that they pull funds from their retirement investment accounts to pay off debt when they should be seeking assistance from lenders instead. If you are struggling to make payments, you should speak to your lender. Let them know what situation you are in, and they might be able to lower your minimum payments, drop interest rates, or even freeze payments for months.
#5: Failing to Keep Tabs on Your Financial Records
Sometimes it’s easier to forget financial problems when we don’t look at our bank statements. However, failing to look at your bank account and payment history is a risky business. Even the smallest issues can lead to major consequences, so the risk of an issue going unnoticed is a high price to pay for a small mistake.
#6: No Retirement Funding
During a recession, people get scared and stop contributing to their 401(k) or individual retirement accounts. However, people then miss the opportunity of buying low and accumulating more shares. If possible, you shouldn’t stop making contributions to your retirement funds.
Have Questions? Reach Out to Our Attorneys
Even the absence of mistakes can’t repair all financial situations. If you know that you need help repairing your debt, bankruptcy could help you make your debt manageable. It can even wipe out your debt for a brand-new start. Once you’ve filed for bankruptcy, bill collectors can no longer harass you. You will have time to restructure your finances and recover from this situation. Our team at Hurtik Law & Associates has been helping individuals repair their financial situation. Our attorneys have the skills, knowledge, and experience needed to help you obtain financial freedom.
Contact us at (702) 323-5750 to schedule a consultation!