5 min read

Financial Stress: Strategies in Dealing with Financial Struggles and Money Problems

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If you’ve had money challenges, it’s important to remember that even major credit “dings” don’t have to be financially fatal. It’s still possible to rebuild your credit and repair your credit score.

Cute caucasian smiling blonde woman in sweater holding bills in one hand and in other smart phone. On table are laptop and bills. Apartment interior. Article Image
Yellow notepad with pen svg icon Lesson Notes:
  • Financial stress can impact mental, emotional and physical health, making it essential to take proactive steps to manage money challenges effectively.
  • Key strategies include creating a prioritized spending plan, negotiating with creditors and seeking professional help from financial counselors.
  • Avoiding financial stress doesn’t mean ignoring the problem—it requires facing issues head-on with a structured action plan.
  • Even small changes, like automating payments or consolidating debts, can reduce anxiety and improve control over finances.

Have high credit card debt.

If you have too much credit card debt, high card balances, too many credit cards or have reached the limit on your cards – get help from Ent.

  • In danger of falling behind on your Ent loan payments? Contact a Member Solutions specialist today at (719) 550-6950 or 800-525-9623 ext. 6950.
  • Learn how to improve your credit score.

Are unable to pay on time.

Get help from Ent.

  • Consider debt consolidation. Sometimes, consolidating outstanding debts into one loan can reduce not only your monthly/periodic payment, but also the total interest amount you pay.

Experience a loss of income.

Have you experienced a loss of household income due to job loss, reduction of work hours, illness or divorce?

  • Use the SavvyMoney Checkup financial assessment tool to take control of your finances, create a workable budget and learn how to watch your spending.
  • Consider debt consolidation. Sometimes, consolidating outstanding debts into one loan can reduce not only your monthly/periodic payment, but also the total interest amount you pay.

Are a victim of fraud or identity theft.

Call Ent immediately if you’ve been a victim of identity theft. We will work with you and the appropriate authorities to help get you on the road to recovery.

Have damaged credit.

Understand how to rebuild your credit after a financial crisis like bankruptcy, foreclosure, auto repossession or late/missed payments.

Be cautious of credit repair companies. They cannot legally take any actions that you cannot take on your own behalf and they often provide only temporary improvements of your credit score, sometimes by removing accurate information that will reappear later. Be wary if a company:

  • Requests payment before services are rendered.
  • Does not explain your rights.
  • Advises you to dispute all negative information.
  • Advises you NOT to contact three credit bureaus.
  • Maintains that they can get rid of negative information, even if it is accurate.
  • Advises you to get a new credit identity.

Annually review your credit report: annualcreditreport.com or call 877-FACTACT (877-322-8228).

Assess your readiness to borrow again. Defaulting on your mortgage causes severe damage to your credit score and stays on your report for seven years.

FAQs

What is the first step to take when you can't pay your bills?
Start by creating a list of all your income, expenses and debts. Prioritize essential expenses like housing, food and utilities, and contact creditors early to request hardship assistance or payment plans. Many lenders offer temporary relief if you communicate before missing payments.

How can I reduce the emotional toll of financial problems?
Financial stress is real, but support is available. Practice self-care, set small achievable goals and don’t hesitate to speak with a certified financial counselor. Addressing the issue constructively can ease emotional strain and build confidence.

Should I use credit cards to cover bills during hardship?
Only as a last resort. Using credit cards for bills can lead to long-term debt and high interest costs. It's better to explore alternatives like community aid programs, deferment options or temporary income sources before adding to credit balances.

Can budgeting really help if I'm already behind?
Yes, a clear budget can reveal where adjustments are possible and help you stretch limited income. It provides structure and helps you avoid impulsive spending or missed essentials. Even partial payments can help maintain stability.

Strategies, tools and resources if you:

Next lesson : Money Planning When Income is Tight