Facing a cash crunch? How to get out of a financial crisis

Unexpected financial emergencies can leave anyone stressed. Whether it’s a job loss, an accident or a medical expense, a sudden change in your financial situation can make you restless and push you to take certain important and quick financial decisions.

To avoid such problems, it is best to take control of your finances immediately, instead of procrastinating. Identify your problems, create a budget and set your financial priorities as soon as you smell the fire. This will help you deal with the issues at hand better and also resolve them quickly. 

So let’s get started by learning some useful tips that will get you motivated enough to take control of your finances:

1. Create a budget:

One of the best ways to deal with a financial crisis is to make a good budget plan. Make a weekly or monthly spending plan and stick with it. Cut down on unnecessary expenses such as eating outside, spending a lot on hobbies and entertainment, etc. This will help you focus on the larger problem and get you through the financial crisis you are in.

2. Stop using credit cards:

Following the budget plan to a T can be difficult; after all, we are all creatures of habit and sticking to a certain rule takes time. However, it is advisable to control your expenditure on credit cards until your financial situation is better. A useful trick is to cut off all the tools that encourage easy spendings such as credit cards. While this is obviously not a permanent solution, it will give you time to make better decisions and focus on the problem at hand.

3. Take a quick personal loan:

You can apply for personal loan from IDFC First Bank that offers quick, paperless disbursal via mobile banking app in just a few clicks. Its competitive personal loan interest rates and flexible tenure options make it one of the few banks in the country that can help you address your immediate needs with minimum paperwork. You can also check you EMI amount with IDFC FIRST Bank’s personal loan EMI calculator. Simply enter your loan amount requirement, period for which you want.

4. Pay your debts:

If you decide to apply for an instant personal loan to get through your financial crisis, do not forget to pay your debt as soon as you can. Unmanaged finances and debts are the biggest cause of financial crisis, so do not fall into the trap again. You can also use money from your savings account to clear any pending dues. Timely payments will help you get out of your entire financial crisis faster.

5. Look for ways to earn extra cash:

Whether it is by selling a possession you no longer need, babysitting, freelancing or getting a second job, everyone has an option to earn a little extra, if only you are willing to put that extra effort. Yes, the amount you make from doing these activities may seem insignificant, but don’t forget - little drops make the mighty ocean. When you are in a financial crisis, every rupee counts and no job is small. Besides, you may even discover that you like your side job enough to make it your full-time career.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.