What do you say to someone who is experiencing financial difficulty? It is tough to see a dear friend or loved one in distress. Paul Fain, President of Asset Planning Corporation appeared Sunday on WBIR, Knoxville’s NBC affiliate to look at your money and your emotions.
PAUL, AREN’T PERSONAL BANKRUPTCY FILINGS A GOOD INDICATOR OF FINANCIAL DIFFICULTY?
Yes indeed: The U.S. is averaging 1.5 million personal bankruptcies per year. Bankruptcies are up 30% this year! Personal bankruptcies result from:
- Job loss
- Illness
- Divorce
- Poor decisions
IT’S A VERY EMOTIONALLY CHARGED SITUATION ISN’T IT?
Common emotions and feelings to anticipate:
- Denial
- Embarrassment
- Fear
- Panic
- Worry
WHAT SHOULD YOU NOT SAY TO A FRIEND IN FINANCIAL TROUBLE?
- Do not assign fault.
- Do not say, “I told you so” or, “What were you thinking?”
DO YOU OFFER WORDS OR DO YOU OFFER FINANCIAL ASSISTANCE?
How you respond depends on your relationship and the circumstances. What to say-
- Sorry this is happening;
- Offer verbal support. Let’s meet for coffee and talk;
- Help them get organized;
- Be cautious offering them money;
- Possible referrals:
- Fiscal responsibility requires basic money management skills, managing a checkbook, a budget, saving and investing. Living within your means: Crown, Dave Ramsey courses, etc.
- Financial counseling services can help resolve budget and debt problems: Clearpoint Credit Counseling
- Bankruptcy locate an attorney.
This segment was originally aired on WBIR Channel 10 on 10/2/16.
Looking for a financial planner? We would love to help you on your financial journey. Contact us today!
