Emotions

• The first emotional impact of the realization that you are experiencing a financial crisis can be difficult. There may be physical discomfort such as chest pains, and you will start to feel emotions such as despair and confusion. These reactions are all normal, and it is best to get your emotions out immediately so that you can then focus on your immediate problem. Take a day for yourself and exercise, meditate or just yell as loud as you can for hours to help let the emotions run through your system. Once you have used your release, you then need to find a way to remain calm. Making rash decisions due to emotional instability is not going to get you the clear thinking you need to address your problems.
  
  

Write it Out

• The initial shock of a financial crisis is what makes it seem disastrous. Rather than focusing on the short-term effects of the crisis, try to put it into a long-term perspective by writing the problem down on a piece of paper and then collecting data to use in solving the situation. For example, a job loss can seem catastrophic. But when you write down your bills, find ways to cut back on your spending and then compare your expenses to what you have available in savings along with the unemployment you will receive, you may find that you are able to sustain yourself for months while you look for a new job.
  
  

Priorities

• In a financial crisis, you need to determine what your priorities are to help you create a plan. List all of your bills and expenses, and then put them in order based on priority. Put the items with lowest priority at the top of your list. When the crisis gets bad enough where you need to start considering cutting back on spending or even allowing some bills to be paid late, then your priority list is where you begin. For example, if you feel that having a cellular phone is a low priority in a financial crisis, then put it at the top of your priority list. The cellular phone will be the first thing to go when you start cutting back on spending.
  
  

Creditors

• Your creditors expect you to pay your bills on time and in full. But if you are heading into a financial crisis, call your creditors right away to see if there is any assistance they can offer. Explain your situation to your creditors and see if they can lower your interest rate, which would lower your payments, or allow you to sign up for a forbearance, which would allow you to skip payments and put them at the end of your loan schedule. Your creditors may be able to lighten your financial burden in a time of crisis so long as you contact them immediately and give them the chance.