What are reasons for financial hardship?
A financial hardship occurs when a person cannot make payments toward their debt.
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Hardship Examples
- Illness or injury.
- Change of employment status.
- Loss of income.
- Natural disasters.
- Divorce.
- Death.
- Military deployment.
What are examples of financial hardship?
Some examples of events that a lender may consider to be a financial hardship include:
- Layoff or reduction in pay.
- New or worsening disability.
- Serious injury.
- Serious illness.
- Divorce or legal separation.
- Death.
- Incarceration.
- Military deployment or Permanent Change of Station orders.
What can cause financial hardship?
The causes of financial difficulty can include sickness, natural disaster, unemployment or over-commitment. Both consumers and small businesses can experience financial difficulty.
How can you prove financial hardship?
This may include either:
- payment of rental bond.
- bank statements showing a reduction of income, essential spending and reduced savings.
- a report from a financial counselling service.
- debt repayment agreements.
- any other evidence you have to explain your circumstances.
What to do when financially stressed?
Here are seven ways that you can manage your financial stress during trying times.
- Prioritize what you can control. You can’t change everything that is causing you stress. …
- Find ways to earn more money. …
- Pay essential bills. …
- Save money (if you can) …
- Track your money-saving progress. …
- Talk to your lenders. …
- Talk to professionals.
What do you not say to a financially struggling person?
We put together this list of statements to avoid saying to a friend who’s working toward financial fitness, and what you can do instead.
- “Treat Yo Self.” …
- “Our favorite store is having a sale.” …
- “Just put it on your credit card.” …
- “Maybe you can find another job that pays better.” …
- “I can loan you some cash.”