Find your financial footing after a setback

Goals are usually shiny, happy things. They energize you and keep you focused. You are 100% going to reach that goal somehow, some way.

Setbacks are the exact opposite. They make it hard to get through the day—so hard that getting out of bed becomes a win. Most of us will experience a sharp, unexpected turn at some point like a divorce, major accident, or the death of someone close. It can also be a job loss, career change, or the family business closing.

For generations, we’ve helped thousands of customers rebuild their finances after a setback. We know that people are resilient and that it’s possible—not easy, but possible—to forge a new path ahead and live a fulfilling life, even after everything they’ve been through. If you are going through a setback now, no matter how big or small, here are some tips that can help move you forward.

Don’t push yourself to operate at your usual speed.

Your mind, heart, and body are working hard to process what happened and will continue doing so for a while. In the meantime, you might do things that are out of character, like putting your car keys in the freezer or pouring coffee instead of milk on your cereal. So go easy on yourself. There’s no hurry. You’ll get there.

Set your own clock

Sometimes, you’ll feel that there aren’t enough hours in the day. Other times, the hours feel like days, and the days feel like weeks. Remember, no big problem is solved overnight.

Hold off on making big decisions if possible

After a setback, many people make changes they later regret. They might sell their home and move across the country or put all the money from their insurance claim into a questionable stock or cryptocurrency. If you don’t absolutely have to make a big decision now, don’t. You can make it in 6 months, a year, or whenever you feel like yourself again.

Determine whether you can pay all your bills

Setbacks can shatter people’s finances. Here are a few ways to survive until you regain your footing.

• Assess the situation. Write down how much money is coming in and going out of your household. You want to have enough to pay all your bills and build your savings.

• Prioritize your payments. Start with food, shelter, and utilities, then pay the most critical bills. For everything else, contact the company or hospital to explain your situation and create a plan both parties can live with.

• Explore new sources of income. Consider getting a part-time or temporary job to generate more income and be around new people. You could also sell crafts, art, or household items online to bring in more money.

Seek financial support if you need to

Thousands of organizations help people facing tough times. The Consumer Financial Protection Bureau offers videos and articles about what to do before, during, and after an emergency or natural disaster. Here are more resources:

• Federal government: Social Security survivor benefits (widows and widowers), FEMA assistance (natural disaster victims), Temporary Assistance for Needy Families

• Nonprofit groups: Salvation Army, Catholic Charities, Red Cross, United Way’s 211 service for local resources, Farmers Home Administration loans for rural residents

• Utility assistance: Low Income Home Energy Assistance Program and local utility programs

Rebuild your credit

Take small steps now toward your new normal.

• Going through a divorce? Some spouses charge up joint credit cards and stop paying bills to destroy the other spouse’s credit. Protect yourself by changing your passwords, closing joint accounts (if the divorce decree allows), and looking for unusual activity on your statements. If you no longer live in the house you shared, get your name off the mortgage so you won’t be stuck paying for it.

• Keep an eye on your credit score. Your Flagstar account comes with My Credit Score, a free service to check your credit score and get insights, tips, and alerts about your credit. Sign into your Flagstar account to see your current score.

• Consider a credit freeze. The three major credit bureaus (Equifax, Experian, and TransUnion) let you freeze your account so no one can open a credit card or apply for a loan under your name. It’s free, and you can unfreeze your account anytime.

• Contact a credit counselor for help. Be careful here because many fake agencies charge exorbitant fees to “help” people who are struggling financially. Instead, start with the National Foundation for Credit Counseling, a nonprofit organization of certified credit counselors who help people regain control of their finances.

Protect your identity

Scammers who prey on vulnerable people are the worst. Here’s how you can fight back:

• Be wary of unsolicited and too-good-to-be-true offers. Don’t respond to unexpected emails, calls, or messages offering financial help.

• Make sure it’s legitimate. Do your research before giving out personal information. Look up the organization and its contact information on its official website. Double-check that a program exists through local government agencies.

• Guard your personal information. Be careful about what you disclose on social media, and never give out your Social Security number, bank account details, or credit card information to someone who contacts you.

• Send and receive money securely. Scammers often ask for wire transfers, gift cards, and cryptocurrency. Do not send money this way unless you know and trust the recipient. Visit the FTC website to keep up with the latest scams.