Thursday, January 28, 2016

Road to Recovery: How to Take Care of Your Personal Finances After a Major Accident

A major accident can derail your life in several ways. Not only is your daily routine and ability to work impacted, you may also have changes in your lifestyle, interpersonal relationships and even your love life with your partner. 

After a major accident, handling your personal finances is a crucial step to ensure your future, including your retirement and investments. Here are some aspects you'll want to handle as soon as you're able.

Automate Your Monthly Bill Payments

After a major accident, you may need surgery, physical therapy and rehabilitation to heal your injuries. The last thing you need is a late or entirely forgotten mortgage payment or car lease. 

Set up automatic payment so there is no chance of a late or missed installment. This will protect your credit rating and give you peace of mind during recovery, in addition to avoiding late fees.

Get Legal Representation

No one really thinks to get legal representation to help them with their finances after a major accident because they think getting a lawyer will damage their finances further. If your accident was the result of someone else's negligence or malice, you may be entitled to a settlement. 

Find out what your rights are by contacting a lawyer such as Pritzker Law or another local law firm. If you're approached by legal counsel representing the other party, sign nothing until you secure counsel of your own and get guidance. You could accidentally sign away your rights to a settlement or, worse, take blame upon yourself. 

You want to make sure that you get out of this situation as cleanly as possible with as much money in your bank account as possible to cover your expenses and recovery after your accident.

Find All of Your Insurance

Depending on the accident and the extent of your injuries, you may qualify for short or long-term disability payments, loss-of-income insurance or other related payments. 

If you've lost a digit, a limb, sight or partial sight or suffered other permanent disfigurement, you may already be insured for that through your employer, life insurance policy or even insurance offered by your credit card company. Read the fine print and find all the insurance you are entitled to collect.

Draw up a New Budget

You wallet is going to take a hit after being hit in a major accident. After an accident, your needs and expenditures will likely change a lot. You may not need to buy coffee and lunch every day if you're not heading into work, but you may instead require copays for doctor visits, physical therapy or prescription medications. 

You may not need to sign up for the next season of ballroom dancing lessons, but you may need more fuel since you can't walk to the store like you used to. Don’t forget about your insurance payments too that you will likely have to make in order to have proper coverage otherwise you will end up paying for your medical bills out of pocket. 

Those bills can become very expensive very quickly. Consider your new limitations and needs, then draw up a realistic budget. This will help you keep tabs on your spending. Save as much money as you can. 

Cut anything from your budget that isn’t important for you to have at this time. You can always pick those amenities back up later.

A major accident is a life-changing event with big ramifications. By handling your personal finances as soon as possible, you can ensure your retirement and financial future will stay on track.

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