Do you really, truly know the state of your finances?
It is very easy to try to ignore the situation. Burying your head in the sand is the wrong decision.
You need to be totally honest and the first thing is to be honest with yourself, extricate your head from the sand and face the facts. It won’t be pretty and I expect that you have known that in your heart and that is why you chose to ignore the problems. The inertia that overcomes us when things become too difficult can be extremely overwhelming.
It is very unlikely that this is a situation that you want or need to face alone. None of us live in total isolation so it is time to include those who are close to you as it is likely that at least some of the changes you are going to need to make will impact on them. Whether it is your spouse, parents or children you need to be absolutely honest with them. There is no use trying to gloss over things, otherwise, they may not understand the seriousness of the situation. Once your and your spouse (as an example) both know what the current situation is you can start to build a plan to move forward. If you both have the same goal you can support and encourage each other.
Your new-found honesty needs to extend to your bank, anyone to whom you owe money and anyone who is going to assist you financially during the period while you get your finances back on track. There needs to be complete and utter transparency to make this work.
We have already decided that burying your head in the sand is not a sustainable, long-term financial option.
So, it is time to draw a new line in the sand and move forward with confidence. Things may look desperate now but you can do it.
Tomorrow we will identify and list all of your expenses.