Coping With Financial Stress
Step One: Coping
The first step in dealing with financial stress is to try to relieve some of the stress as quickly as you can. This can help you feel better and give you the strength and perspective you need to make changes for your future. Here are some important coping strategies:
See Your Doctor: If you are experiencing physical symptoms such as panic attacks, insomnia, depression, or high blood pressure as a result of your financial problems, see a doctor. It can be very difficult to handle financial pressures when you are not feeling well physically or not getting enough sleep. Medical help may be what you need to be able to cope with your problems.
Exercise: Regular exercise can help reduce stress. According to the Canadian Mental Health Association, research has found that regular physical activity can be as effective as psychotherapy for treating mild to moderate depression. Aside from the fact that exercise can just make you feel better, it could be just what the doctor ordered. Visit www.cmha.ca.
Get Help: If your financial distress is compounded by abusive or self-destructive behavior - either in yourself or in loved ones - get help. Those who are abusing alcohol or drugs can find resources through local support groups like Alcoholics Anonymous. There are many resources and support groups available through the Canadian Centre on Substance Abuse as well. Employee assistance programs (EAP) are also available through your employer. The Canadian Mental Health Association is a great resource for those who feel they may be abused at home or if you feel that your stress is being taken out on those you love.
Deal with Debt Collectors: Debt collectors can be aggressive. If you are receiving calls, communicate with the collector and let them know your situation. Under no circumstances, should they be harassing you. It is much better to try to work with your creditor as much as you can before they are forced to sell your account to a collection agency. Once your account is sold, the creditor notifies the credit bureau that the debt was charged off. If you are able to work something out first with the creditor, you can avoid that negative mark on your credit report.
If you know that you are unable to meet the obligations that your creditor is offering, you are better off contacting a reputable counselling agency early, than letting the account charge off. Working with a counselling agency may reflect on your credit report but it shows that you are making an effort to meet your financial obligations. When you let your accounts go to a collection agency, it reflects that you did not make an effort to fulfill your part of the deal. Once you are working with a credible agency that can make payment arrangements and communicate with your creditors, the calls will stop.
You are protected by both provincial and federal regulations from being harassed and treated unfairly by financial institutions and agencies. If at any time you feel that you are being treated unfairly by a creditor or a collection agency contact your local government or visit www.consumer.ic.gc.ca.
