There is nothing more stressful than being in debt. Every morning people in debt wake up and think about what they can do, and they go to sleep at night worrying about it as well. They aren't alone. According to the Washington State Department of Financial Institutions, 40 percent of American families live beyond their means and the average household with debt has about $10,000 to $12,000 in revolving debt and about nine credit cards. Getting out of debt can be very difficult, especially if people are putting all their income toward paying off the interest alone. But stressing about debt doesn't help; action does. Here are three steps that will help you learn how to cope with financial stress. 

#1 Talk to an Expert

You don't have to do this alone. There are financial experts waiting to help. They work with you to provide debt counseling, consolidate your payments and come up with a plan to pay off your debt. If nothing else, talk to a trusted family member or friend who is good at managing money. Tell them you are not asking for money, you just need to get the stress off your chest. Perhaps they will share a great idea for getting out of debt or help you develop a plan, which is the second step to learning how to cope with financial stress. Talking to someone helps you feel like you're not alone.

#2 Develop a Plan

Look at your debt and your income and come up with a plan to pay it off, even if just a tiny bit at a time. Write down the plan; this is the most important part of this step. Hang the plan in an easily visible place, one where you will see it every day. Ideally, the plan should include an action for each day, such as "sell old camping gear and use it to pay debt A" or "clip coupons for grocery store and then use saved money to put toward debt B." Of course, the plan will have larger goals as well, such as putting a small percentage of your paycheck toward paying off a larger debt.

#3 Reward Yourself for Small Successes

Give yourself a pat on the back for any small successes. Cross items off your action plan that you have completed. Instead of allowing yourself to stress about the debt, remind yourself every day that you are working toward a better future.

photo by: eamoncurry123

School's Out For the Summer!

Along with the warmer weather of summer in most cases also come extra expenses of summer. While you may budget your monthly expenses, it is also important to figure out what extra expenses you may have over the next few months and work them into your monthly budget instead of having to charge them.

Some examples of extra expenses are graduation and wedding gifts, summer vacation and kids activities. Graduation and wedding gifts can add up and if you have a number of weddings to attend you may have expenses besides the gifts such as travel, and extra clothing costs.

Especially, this year with other costs such as gas and food prices going up it is more important than ever to make room in your budget for the added expenses of summer activities. So, Before summer vacation burns a hole in your budget, take some time to plan ahead for those extra expenses

Here are some Budget friendly Summer ideas:

• Let’s Go Camping! A mainstay for school-aged children is summer camps, whether a day camp or overnight, and these activities can be expensive. According to the American Camp Association, more than 11 million children and adults attend camps each year. The average cost for a summer day camp is $184 per day. It’s easy to see how this expense can quickly drain the household budget. Community organizations such as the YMCA or Boys and Girls Clubs of America often offer less expensive campoptions for kids. For information on camps, parents can visit http://www.acacamps.org/.

• Fair weather sports. This is the time of year when people start participating in sporting activities, even those who aren’t avid sportsmen start participating in activities such as softball leagues, swim lessons and
  golf. Be realistic and budget conscious when outfitting yourself, or your child with sports apparel. Check out a thrift store, online store (like Ebay) or a used sports equipment store to save money. Choose a local public course to do your fair-weather golfing. The grass may not be as green as professional courses, but you will keep more green in your pocket.

• Gas prices are on the rise. Summer is the time of year when the price of gas goes up. Traveling consumers feel the impact when going on vacation, but they'll also notice the increased burden placed on the day-to-day budget. Faced with rising costs from other summer activities, higher gas prices have the ability to inflict pain on the wallet. So how do you prevent yourself from becoming one of the casualties of high gas prices? Pay attention to where and how you are driving. Plan out your day's
  activities and combine trips when possible.

• Let's have a party. Summer is a perfect time to gather friends and family, and celebrate the good weather and great food. Hosting a party however, can be expensive, when you factor in food, drink and other costs. When planning a party, involve your guests in menu planning. Ask friends to bring a dish to share to alleviate the burden on the host. You'll enjoy the extra savings, and the extra time with your guests.

• Greener pastures. A brown lawn in the dead of summer? Heresy. It goes against the keystone of homeownership – keep your yard looking beautiful at all times. But showering your lawn with affection, and water, can quickly drive up utility costs. Consider watering half as much, and only turn on the
  sprinkler in early morning or evening hours, instead of in the middle of the day. You'll maximize the impact and minimize the cost.

• Go for a swim. Taking a dip in the neighborhood pool can also take a dip in your wallet. Instead of paying for costly club memberships, use the park district or local recreational center instead. The costs are often less and the instructors are every bit as qualified. If you are considering a pool membership, inquire about seasonal memberships, from Memorial Day through Labor Day, instead of paying all year long.

• Taking a vacation. Don't let your summer trip take your budget for a ride. Think about alternatives. You can still do something memorable with a shortened vacation. Stay closer to home to save on travel expenses or, take a vacation that is just one or two nights away rather than a week-long expenditure. Bring groceries and cook on your own when possible to avoid costly meals at restaurants. Additionally, play tourist in your own hometown.

• Talk to a budget expert. Summer activities can add up, and planning for those extra expenses can mean the difference between busting a budget and maintaining one. If you are struggling with current budgeting
  expenses a Debt Relief Solutions Specialist can work with you to develop a game plan for your  day to day budget and make room for summer fun.

Call 1-877-492-4109

Losing your job can feel like your whole world is falling apart.  A job can be so much more than just a J-O-B, it can define you as a person.  When it is pulled out from underneath you with no warning, then your mind set can really be affected. Depression can rear its ugly head during times of high stress and pressure when your personal finances are falling apart.

If you are the main bread winner and you have the responsibility to support your family, loosing a job can soon turn to depression out of feelings of despair and disappointment. Credit card debt, mortgages, and personal loans are all commitments that need to be paid.  What happens when you simply don’t have the cash flow?  

Keeping a positive mindset is paramount in times of unemployment.  You need to look at this as a temporary situation and your new job is to look for a new one.  Don’t sit on the couch and dwell on the situation, this doesn’t help anyone.  If you just lost your job, and you worked 40 hours per week, then you need to be actively looking for your new opportunity with this time. This is not an opportunity to catch up on reading or cleaning.  If you have a family to support or bills that need to be paid, then you must do all you can to get back into work asap!

Ensure your resume is up to date

Rewrite your resume and cover letter and make sure that it contains all your current achievements.

Ensure you have an interview outfit which is clean, ironed and ready to wear.  Be ready for an interview at short notice.

Have printed copies of your resume and cover letter with you at all times.  Carry a resume folder in your car and bag so that you can drop it off as you find opportune places.

Keeping positive in times of stress and little income

Dealing with debt and stress is not fun for anyone.  However, money does not make you the person you are, so don’t let it define you.  We all need money to pay bills but don’t focus on the lack. Keep your mind on taking action and applying for jobs.

Be Proactive in looking for new work

Get creative when looking for a new job.  Look online and in local newspapers for companies that you would want to work with and make contact with them about future work.  Temporary or part time jobs can help you get a foot in the door.  Be open to the possibilities of accepting jobs that are outside of your normal industry.  You can look for more permanent work in your chosen field  while you are working in a less familiar area.  By keeping employment gaps on your resume to a minimum,  you demonstrate your tenacity and work ethic.  By accepting a position that is less than ideal, you may be setting-up your next, better job offer.  Remember that employers prefer to hire someone already employed.

Dealing with debt

When the debt collectors are calling you for money,  and you have little, stress levels can skyrocket.  Do not put your head in the sand and ignore this situation.  Either answer the phone and discuss your situation with them, or look into your debt relief options.  Your debt will not go away on its own.  You have options to explore including credit counseling, and bankruptcy as a last resort.

Times of change always present opportunities that may have not have been available before.  Be proactive, positive, and keep the lines of communication open. You will get back to work.  You will get debt under control.  You will regain your life again.

Coping with financial stress is not only possible, but may help put you back on the path of financial stability!

Let's face it, we are living in one of the most financial challenging times of our history.

• Unemployment is at an all time high
• There never seems to be enough money at the end of the month
• Retirement savings at an all time low

Someone has said that FEAR is really:

• False
• Evidence that
• Appears
• Real

Here are 3 Tips on how to cope with Financial Stress:

FIRST: As bad as your financial situation seems, it is probably not as bad as you think!

There was an article from ABC News that really nails the problem:

Don't scare yourself with "what if" scenarios. Don't tell yourself panic-inducing stories about the future, because you'll begin living in this catastrophe that hasn't actually happened. Instead, look to the past, at the stories of how you've rebounded before. We're in a time of incredible uncertainty but the future is never certain -- remember the tough times you've made it through before.

You can probably recall tough times before and somehow, someway, you made it!  YOU CAN DO IT AGAIN!

SECOND: Determine exactly where you are financially.

If you haven't done so, you need a very complete budget.

I know, things may seem so bad that you may be thinking, What's the use?", but you have to know! 

Remember?  FEAR =  False Evidence that Appears Real

Once you know how much you have coming in (net take-home from all sources) and how much you have going out, you can start to deal with the problem or at least free up some outgo that you most likely can live without each month:

• Daily Starbucks ($3 for a cup of coffee x 5 days x 4 weeks = $60)
• All the extra channels on your Cable TV (you may save $25-$35)
• Going out for lunch each day ($10 x 5 days x 4 weeks = $200 !!!)

And there is probably more, but you get the idea. 

You could free up a coupld of hundred dollars without too much pain or sacrifice!

THIRD:  DON'T BE TEMPTED TO USE (OR KEEP USING) YOUR CREDIT CARDS!

I know the rational behind using credit cards to make up for lack of income, but in the long run, you are just charging your way into a black hole that you may never recover from.

But if you have serious credit card debt, what can you do?

There are several programs available and you should request a FREE CONSULTATION to determine if one would work for you.

Learning how to cope with financial stress is not impossible.

Remember these 3 tips:

1. Your financial situation is probably not as bad as you think.
2. Find out EXACTLY where you stand financially.
3. Don't be tempted to use those credit cards!

Fianlly, if you are being harrassed by collectors, click below for free information:

photo by: anitafrances