Preparing for the unexpected

Many people don’t like to discuss about their financial problems with each other. Unemployment is the main reason of the financial ruin. The situation can become unavoidable if you are doing a poor planning with your finance. People in credit card debts are getting regular and harassing phone calls from their creditors, collection agencies. They are been called repeatedly at work, home, and sending collection notices to their emails or mailing address. People in such hard situation are not only being stacked by the creditors but are also getting rejected from potential employers. Each and every single day can get painful. The key to surviving unemployment or an abrupt interruption in employment and not having a blemish on your credit report is to create emergency funds. Develop a plan which includes purchasing credit insurance, and contacting your creditors to work out some kind of arrangements.

The first and foremost thing that everyone should do, whether you have credit cards or not, is to set aside some funds for emergencies. This way you will be able to cover your household expenses, food and rent. Make an effort to cover your payments for credit cards, loans, for up to six months in that emergency fund. You will have some peace of mind when you have the emergency funds ready and while you are seeking employment.

Tarjetas de credito is the Spanish term of credit cards. When you are applying for credit card, look for the best offers and the available credit. You should check out the interest rates and perks to the credit insurance. Different credit card companies have schemes like credit insurance that can cover your monthly payments up to a certain period of time. This will be a great help if you are unemployed or temporarily disabled. The interests will still accrue on your outstanding balance, but if you have credit insurance, your creditors will not mark missed payments on your credit report. This will stop any blemishes on your credit ratings.

If you have ran out of your emergency funds, it is time you should start contacting your credit card companies and make them aware of your situation. Tell them that you have every intention to pay them back but you don’t have the funds ready at the moment. They will be willing to work out some kind of arrangements and offer you extensions. If you avoid speaking to them, they will start calling you on the phone and send collection notices with the thoughts that you are showing your avoidance.

Planning is very important before any unexpected happens. Unemployment can raise its ugly head anytime and you should be well prepared before it happens. Your plans should include creating an emergency fund to cover up the living expenses including your mortgage, car, student and other installment loans, besides having enough funds to cover your credit card payments for the next six months. Purchasing credit insurance will certainly make your plans concrete. Just like you will refill the gas tank of your car before going out for a long journey and check for any mechanical problems, you will have to make arrangements and proper planning in your life, because the journey might get bumpy when you are hit with an emergency.