In the context of financial recovery, what is the first step to take?

To initiate a financial recovery, assessing your current financial situation is a crucial first step. This process involves reviewing your income, expenses, debts, and assets to gain a comprehensive understanding of where you stand financially. By conducting this assessment, you can identify areas that need improvement and develop a realistic plan to address your financial challenges.

Once you have a clear picture of your financial status, you can effectively prioritize goals, such as setting long-term financial targets or determining how much to save. Additionally, understanding your current situation will inform the decisions you make regarding whether to seek loan modifications or any other financial assistance. Without this foundational knowledge, it would be challenging to make informed decisions about future financial actions.