Extreme Measures definition is drastic action. Extreme measures vary depending on the person. Drastic action is a choice that is not thought of until things get to reaching a breaking point level. It can be leaving your home city, quitting a job, leaving a relationship, or cutting all of your hair off. This piece will read as if levels of extreme are the same for all and keep it financial-based. What do we do if we reach a point where everything is getting out of hand? There is just too much pressure on us. What are the steps we must take to lower the pressure? What do we do if we are in a position where we feel things are going to blow before we can relieve the pressure? All good questions. Extreme measures are necessary when necessary. Accept that. Now, we are ready to discuss.
Most of us are in a week-to-week, month-to-month battle. We have rent/mortgage, children, significant others, students loans, car notes, and savings/investments. We still need to eat, attempt to stay healthy, and how some social life. Things are always a step away from hysteria. If we lose our income, the rest of the list will not be covered. We usually feel a level of angst when an unexpected expense hits us causing something ti come up short. This fear isn’t that bad because it is only a hit to our savings or spending money. It sucks, but it’s not that big of a deal. The big deal comes when the unexpected expense comes along with an unanticipated loss of income. Things can and will go bad fast. The first action we know of is to look for supplemental or replacement income. In most cases, this is about a month of fear and a depletion of our savings. Extreme measures are required when that month turns to 6 months or more and, the savings are gone.
In this situation, drastic actions are required. First, you continue to look for income. Secondly, you need to make a list of what you aren’t willing to lose. The rent/mortgage should be number 1. The mortgage is more important than rent. If you are renting and have somewhere else you can stay, it’s a no-brainer. The apartment has to go. If you don’t have a place to stay, treat the apartment like a mortgage and hold on for dear life. The most important of all of your possessions is your shelter. Treat it as so. Will it be the car note that must go? Well, the car will allow you to get to that new position when you find it. The car should be number 2 on the list of what to hold onto. Your list is now mortgage and your transportation. The third is a personal choice. It can be a child’s extracurricular activity, paying on debts to maintain your credit, or something else. This scenario is an adult issue. We’ll need to make adult decisions.
Let’s stay with the top 2. The extreme measure will be cutting out everything else. Now your adjusted expenses only requires you to maintain your dwelling and vehicle. For most, these are large monthly bills. The dwelling comes with electricity, gas, water, cable (wi-fi), and food bills. The vehicle brings along maintenance, gas, and insurance. Yes, for some of us the car will have to go. Losing a car is where the cable (wi-fi) in today’s age will take away the need for a car. Remote positions will be your option. Your credit will be shot for years. Missed payments stay on your credit for years. Multiple missed payments, charge-offs, and possible judgments will stick will you for almost a decade.
In closing, we have to do what we have to do. Damage will be done. Reminders will stick around for a long time. Our creditworthiness will be at an all-time low. It will be hard to get another place or vehicle at this time which is why it is imperative to keep these things. You will not qualify for another for a while. A mortgage is easier to hold onto than a rental property because you only have to qualify once. Mortgages aren’t renewed like leases. Keep this all in mind if you hit financial troubles. Extreme measures are a little easier when you know what is on the other side. The hope is we never have to go through this but if we do, a peek behind the curtain never hurts. Chest out and chins high people. Life will go on.
Food for Thought…You do the Dishes.
