Debt consolidation

The Financial Recovery Process

1. Evaluate Your Current Financial Situation
2. Develop a Financial Recovery Plan
3. Implement Your Plan
4. Evaluate and Adjust Your Plan

As we work through the module, we will examine these steps in more detail and discuss what actions you should take for each step. There are a few things to keep in mind as we discuss the financial recovery process:

• The financial recovery process is a slow and steady one. It can take several years to fully recover financially and repair, or rebuild, your credit.
• You may need to ask for help along the way. This allows you to accomplish your financial recovery goals faster. For instance, a reputable financial counselor may be able to negotiate lower interest rates than you can, or you may be able to pay off your debt quicker if you seek assistance through local programs (e.g., rent, mortgage, food, and utility assistance programs).
• You should expect to experience an occasional setback during the financial recovery process. When setbacks occur, you may need to re-evaluate and adjust your plan. However, try not to let setbacks discourage you or take you off course from your plan. By being prepared for setbacks, you will be able to adjust and recover quicker.
• Remember that you are not alone. Many people are embarrassed to share their financial situation with others. However, you may find that it helps to talk with and learn from others who are, or have been, in a similar situation.