If you have not faced a financial crisis in the past few years, or know of someone who has, you are probably in the minority. It has become so common that most people at least know of someone who faced financial disaster.

Perhaps you got yourself out of it, but have to fight back to gain that stability and security you once had. Or, maybe you are still in the middle of the battle and are looking for ways to make sure you are in better shape once you get out of trouble.

Either way, the following information can be valuable to anyone looking to get out of a financial crisis, or not wanting to see one ever again.

Options for Those still in Trouble

Determine whether or not you can do this on your own, by taking a good hard look at whether or not your income can cover your bills. Some people are in trouble, even though their income is enough, because they fall prey to poor spending habits.

If you find that you need help, you do have some options, such as credit counseling, debt consolidation, and debt management, or in some areas, voluntary IVA. These are all methods of getting out from under all the debt, with the help of others.

Then, there is bankruptcy, which we all would love to avoid.

But, let’s move on to what you can do to get yourself in better financial shape now, and help prevent it from happening again in the future.

Live Within Your Means

Most of us have more than we need, if we be honest. For example, do we really need multiple cars, a spare room in the house, and video games? I remember when I was a kid, my parents made it work with 1 car for the longest time, even with both of them working.

We also didn’t have a spare bedroom, or video games. OK, they didn’t have video games back then. But, my point is, they didn’t spend money they didn’t have. Everything they bought, with the exception of the house, was paid for in cash.

Now, that was not easy… because they were not high earners. Hard workers, yes, but it didn’t reflect in their paychecks. My point is, if they could do it, most of us can as well.

If you have more cars than drivers in your household, then you might consider selling one to either pay off a bill, or put it in the bank for that inevitable ‘rainy day’. I’m not going to go on preaching here, because I need to listen to my own advice first.

Work at Lowering Your Expenses

Now, I will readily admit that this next bit of advice can lead to an irritating task. But, it’s worth it, trust me. Perhaps if you look at it as a challenge, it might be more exciting for you. At least that worked for me. Here are some areas that you might be able to save some money:

• Credit Cards. If you have a running balance on a card (hopefully you won’t for long), call your creditor to see if you can have your interest rate lowered.
• Cell Phone and Cable. Call your carriers to see what you can do to lower your cost. Explain to them that you are trying to cut cost and might have to go elsewhere, if they can’t help you.
• Insurance. Talk to your agent to see if they can re-evaluate your policies to see where you can save money. A good agent will work with you, rather than see you go elsewhere.
• Mortgage. If you haven’t already, look into refinancing your mortgage to see if your payments can be lowered. Once you are on your feet again, look into a bi-weekly payment plan, if they have one. Some of those plans can knock several years and dollars off your loan. However, it does not lower your monthly payment.

If you just sit down and re-evaluate your bills occasionally, you might find ways to save a little money. Even if it’s just $50 a month, it’s better in your pocket than in theirs, right?

Create a Household Budget

Most importantly perhaps is getting your household on a realistic budget. Write down every expense you have, as well as income. Look into a computer software program to keep track of everything. I use Quickbooks Online for our business, and I’m considering using it for personal use as well.

Of course, this will only work if you are completely forthcoming about even the smallest purchases. In other words, if you stopped for a snack, keep the receipt, and then put it into the register. My husband and I have found that the small cash purchases are what always surprise us.

Keep a Positive Outlook

Perhaps the best thing you can do is to keep your chin up. Don’t beat yourself up over past mistakes or unexpected financial disasters. It won’t help to get depressed over it. In fact, it could do just the opposite. Depression leads to not caring, and that can only lead to another disaster.

So, take the above advice into consideration, and keep a positive outlook. It will get better!

As a freelance writer, Kathy Barber enjoys writing on topics such as online business, home brewing, and working from home. Her latest series of articles stem from research on www.debtmanagementplans.uk.com, and other financial sites. Kathy and her husband own a medical practice, and live in Michigan with their young son. Together, they enjoy camping, entertaining, sports, and music. When Kathy is not working, she loves spending time with her son.