Being Proactive Can Help You Survive a Financial Setback

Sometimes it takes just one unexpected setback or emergency to trigger a debt crisis.
 
It is normal for some people to have feelings of loss and doubt after a less-than-positive life experience. However, it is important to move ahead and find ways to get back on your feet again and keep on the debt settlement savings path. Here are a few tips on how to stay proactive if life throws you a curve.
 
Losing a Job.
 
If this happens to you, keep in mind that you are not alone. Many good workers are losing jobs in the current economy. You could begin taking action by visiting the Department of Labor at www.dol.gov (866-487-2365) to learn more about unemployment benefits and to search lists of unemployment offices according to state. Also, The Center for Debt Management suggests that you review your employer’s severance benefits, including the temporary continuation of your health insurance.
 
A Medical Emergency.
 
Since mistakes can happen, it might be wise to review all doctor and hospital bills and insurance claim payments/denials. If you find a discrepancy on your bill and cannot resolve the dispute with a doctor, hospital or insurer, you might want to contact your state consumer protection office or insurance regulator for guidance.
 
If you incur medical or hospital charges that you cannot afford to pay for in full, The Center for Debt Management suggests calling the service provider’s billing department to try to negotiate a reduced bill or a payment plan with monthly payments. You might also benefit from the Health Coverage Tax Credit (HCTC). Go to www.irs.gov and do a key word search for HCTC for more information and to see if you are eligible. In addition, if your medical bills are high, you might qualify for a federal tax deduction. Try to keep all bills, cancelled checks or other receipts in one place so you know where they are for tax time for your tax preparer.
 
The Death Of A Family Member.
 
Before you commit to any funeral costs, you should consult with other family members and a lawyer to find out if any prior instructions or arrangements were made. Also, try to locate important documents, such as insurance policies, as well as an original copy of the most recent will. It is a good idea to make multiple copies of the death certificate, which will be needed to apply for death benefits (such as through life insurance policies or Social Security) and to access bank and other accounts.
 
If the family’s medical insurance is through the deceased person’s employer, you might want to consider options for continuing coverage.
 
Divorce.
 
Divorce can be a complicated process and the laws are different depending on the state in which you reside. You don’t want to go into anything without knowing your rights, so it might be wise to consult a professional. However, The Center for Debt Management suggests that you could possibly reduce some legal fees by working with a mediator to resolve certain issues such as child custody.
 
Failing to downsize after divorce could lead to debt. When it comes to spending, recognize that living your old lifestyle may not be possible on one salary.
 
According to www.Kiplinger.com, you should update your will and the list of beneficiaries you designate on life insurance policies. Try visiting www.familylawsoftware.com for information about the divorce process. You can view ‘The Divorce Guide: A World of Help’ when you click the link under the ‘For Individuals Facing Divorce’ tab.