Melissa is a mother of 2, lives in Utah, and writes for a multitude of sites. She is currently the EIC of HarcourtHealth.com and writes about health, wellness, and business topics.

The stress caused by financial issues has ended marriages, ruined partnerships, and impacts life quality negatively. Unfortunately there are certain disasters that you might encounter during your lifetime. The way to react is not to panic by taking out a high interest loan or something of the sort. Take your time to evaluate your options instead of doing the first thing that comes to mind and list out positives and negatives of each option. Taking a proactive approach to solving the issues is also important as being reactive could be what has landed you in this situation. The following are financial disasters that you can encounter and how to recover in a timely manner as well as effectively.

Getting Behind On The Mortgage

Understanding the number of how many months behind on mortgage before foreclosure is important as some people think this starts after one missed payment. 120 days is the answer though and most mortgage companies will work with you when asked if you get paid on a certain day. The truth is that most mortgage companies will give you a grace period of a week or two if you simply ask as to avoid late payment fees. The last thing anyone wants is to go through a costly foreclosure process for the lender and you lose your home. The best thing that you can do is communicate with your mortgage company and figure out a way to pay on time. There are plenty of opportunities to earn through side gigs as the freelance economy is extremely healthy.

Credit Card Debt Keeps Increasing

Credit card debt can haunt us for years if it is not managed in the appropriate manner. The interest rates on some credit cards can be immense as can the late payment penalties. Consolidating this debt can be wise and paying as much as possible is imperative. With interest rates up to 25 percent or more this should be a person’s primary focus to pay off. Living within your means is important and not all people understand what their lifestyle should look like in a financial sense. Avoid credit card debt as you can spend years putting a dent into a huge amount of debt accrued.

Medical Emergency Without Insurance

Health insurance is extremely expensive in some cases with not all people able to afford it. If you are lucky enough to be able to afford it you should at least get the most basic form of coverage. A medical emergency can cripple a family financially if there is a multiple day stay in the hospital with expensive procedures being done. Medical bills can add up so do not be afraid to ask in a nonemergency situation what something will cost. Often times you can get a procedure done at a far cheaper rate when you call around.

Sudden Loss Of Steady Job

The loss of a steady job can be devastating to a person’s confidence as well as their financial health. Putting money aside in case this happens can help you avoid living off your credit cards which can be a dangerous game. Freelance work is available and this can help keep the family afloat until you find another full-time job. Reduce spending during this time as you do not know how long it will be until the necessary amount of income is being earned again.

As you can see as long as you take a positive attitude and sound strategy you can overcome these issues that can cripple a family financially. Take time to assess where you are at risk financially and protect yourself today!