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You are flat broke, now what? It is one thing to not have enough money to enjoy that thing you wanted, it's entirely different when you have no money at all even for food. When in dire straights there is still hope as long as you continue to do the right things.

Now that you are flat broke, it's time to assess the situation, not panic. If you want to get to point B, you have to know where point A resides else you will be going off in random direction with little hope of ever reaching B. You are at point A now, and you likely do not want to stay there long.

Look around you, determine how you got o your current position is something you need to determine so you do not ever take the road you were on again. Use caution with your next move. If you are perched on the side of a cliff, you want to make sure you do not fall off the side and make matters worse.

You may be flat broke now, but making decisions in haste could keep you broke longer, set you up for returning back to being broke as fast as you recover, or create a situation worse than being broke. Yes, there are situations worse than being broke.

Once you accept your situation, call out for help. If you have no creditors or bills, no problem, you just have to make enough money to eat, stay clothed, and find shelter. More than likely this is not your situation and you do have bills, big bills and that is why you are now broke.

Contact your creditors and make them aware of your situation and ask for help. If you miss a payment because you are broke, they will help push you off that cliff. If you call them and ask for help, they will work with you and reach out a hand to help you get a footing. You need not be thinking bankruptcy, and should only do that as a very last resort.

Minimize your spending. You are broke; you need to stay there a while so you never forget what it is like and that will help you to never return. Now is the time for discipline. Do not create new bills, do not make transactions that will exasperate existing bills, paying off credit with more credit usually does not work unless the new credit has favorable terms.

Favorable terms do not always mean a lower interest rate or lower monthly payment. One must also consider the amount of time it will take to pay off the debt, as the total cost of the credit may be more though the initial terms look favorable. Certainly one could be in a situation with no choice, but by being aware of your surroundings and to not panic means to look at the whole picture

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