NPA figure in the banking and NBFC industry is exorbitant. Banks are suffering but what about the borrowers who have suffered business loss. They are facing recovery agents, social abstinence, legal battles, the stress of managing family expectations and responsibility of turning around the business. The situation is dire.
People suffering from financial distress are all around us. Financial distress is not a new thing. It could hit anyone anytime. In a volatile time like this, the risk of distress prevails in businesses and in jobs.
A company can go out of business losing out to competition. It could also get a hit due to NPA with banks. The staff layoff is usual. All these realities have created an atmosphere of fear.
“Everybody goes through some tough times in their life, no matter what you do. Man, I’ve had my tough times.” David Ortiz
It is a huge challenge to deal with the reality of financial distress. Farmers are committing suicide. But that is not the option for anyone. Having a systematic plan in place could help you refrain from taking any haphazard decision.
Here are the aspects you should consider while dealing with financial distress.
Accept the reality. But know it well that it can’t last forever. It is a temporary phase. Keep your cool.
This will help you to take a considered next step. This will help you to keep your temper under control and maintain good relations with your near and dear ones.
It may be difficult but it is vital to deal with this situation.
Know Your Strength
Assess your personal strength. Your education, your skills, your experience, and your expertise are your strength.
Your loving family members are your strength.
Banking on these strengths helps you to deal with the distress.
Have confidence in you, and re-initiate the efforts. You know how legendary actor Amitabh Bachchan had dealt with the financial distress with his strength.
You can do it too.
Know Your Assets
Your financial assets can help you in this troubled time. They can generate income for you. Put your assets to work. Liquidate dead investments, reallocate underperforming investments, and invest for regular income to sustain the time of distress.
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Cut Your Expenses
In order to survive longer in time of distress, cut your avoidable expenses. Do not over cut but be a smart spender.
Have an approach to avoid, defer and reduce. Avoid unwanted, defer what can be, and reduce what is necessary.
Find pleasures in small inexpensive things. Live a minimalist lifestyle.
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Meet Your Lenders
Don’t avoid meeting your lenders if you can’t pay your debt on time. Meet them, explain to them the situation. Offer them a revised repayment plan
They trust honest borrowers. They will cooperate and mostly agree with your plan.
Running away will make you untrustworthy. This will compel them to take legal action. This may result in liquidation of your assets.
Be brave, be honest and see the miracle. Honesty and braveness are still considered good traits.
Explore Your Contacts
Your contacts are your goldmine. Meet the people you know. Meet your friends, professional acquaintance, and your colleagues, everyone.
They will suggest you a way forward. They may help you with the right contacts you may need.
Don’t Ignore Fitness
Yes, the most critical. There are chances your financial distress might impact your physical fitness. If you ignore your health, it would be difficult to fight two battles at a time i.e. financial as well as physical.
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Read Positive Books
This is an inspiration. Inspiration is the key ingredient to come out successfully from this situation.
Books help you to keep cool and strategise your fight.
“I have never known any distress that an hour’s reading did not relieve.” Charles de Montesquieu
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At the end just do your Karma with honesty and sleep tight at night. Good sleep is necessary to deal with mental stress during the day.
Remember the famous quote:
“Tough times never last, but tough people do.” Robert H. Schuller
Financial distress may be a reality but know it well; it could be a temporary reality. Deal with it and come out of it.
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