Freedom financial network helps people to get away from their financial hardships. This means helping consumers get rid of their debt for the least possible personal cost and educating the customers by providing them with appropriate solutions. They follow the approach of human perspective and represent the consumers exclusively. My friend Kim was facing major financial problems and approached them to get solutions to her problems.

Some of the reasons for financial hardship are unexpected expenses, overextension on credit, reduction of income or job loss, illness and injury etc. Unexpected expenses are expenses that happen without any planning. Example: Guests coming over and living for a longer duration or major car repairs etc. Overextension means a loan or extension of credit that is larger than what the borrower can repay. They might require the customer to consolidate their debts into a single loan. Consumers who pay more than three-third of their income to repay debt are considered to be overextended. One exception to this is the mortgage loan. Reduction of income or job loss is nothing but due to unforeseen reasons. If the customer loses his job, then he will not have any income to re-pay his loans. Sometimes due to some financial reasons at his work place, they might have reduced his salary, which will affect the whole financial planning of the borrower. He might not be in a position to repay his loans. Other things are like illness or injury, in the event of which the borrower might not be able to go to work and in turn there will not be any income. Eventually, he will not be able to pay off his debts. So these are few reasons due to which he will face financial burden.

In order to overcome the financial hardships, few important things that we need to be careful of are as follows:
Learn to live a decent life – Especially when you are in a financial crisis, you may try and keep your expenses to the least or basics only. Example: No need to buy the latest styles and keep up with the neighbors because this is not important. But try and save each and every penny of the money to repay the debts.

Increase income generation – Try and find out some part time jobs, which can help earn extra money. Example: There are few jobs, which might not need any additional skills, like delivering newspapers or pizzas etc in the spare time. This extra money will help in repaying the debts.

Prioritize the payments – Try and first repay the debts with high rate of interest. Example the credit card payments. Otherwise, you might end up paying only interest, but never be able to repay the principle amount. High interest rates can make us feel that we will never be debt-free. After paying off the highest interest payments, please make sure to make the payments that have the low principle amounts. In this way, the debt burden will become less because the number of debts will decrease with very little effort.

Family help – discuss the debt problem with all the family members, so that they can help in reducing the costs of the household and try and pitch in some amount, wherever possible. This amount will in turn help to repay the debts.

Author Bio: Freedom Financial Network

Category: Finances
Keywords: Freedom Financial Network