OK, you have just lost your job, and have living expenses, and a mountain of debt to support… what now?
We face debtors in this situation all the time. No One (or at least almost no one) plans on loosing their job, panic sets in, what to do next?
The Facts About Unemployment
The good news is, unemployment is finally down, and benefits for unemployment have been extended, this could have been worse.
This is one reason that you want to have as much of a cushion as possible. If you find yourself unemployed, your choices become limited when you carry massive debt. Some employers will look at your credit history, and not hire you with bad credit. Other times you might jump to take a job just because of the crushing weight of your obligations, even though it isn’t a good job for you. Debt takes away options.
For the only time ever, you will hear us say… only make minimum payments on everything. While you are unemployed, contact everyone you owe, and try to negotiate as small a payment as possible with everyone. Your financial footprint needs to be minimized so that you don’t have to “jump” on the next job, even if its not a good one.
Every elective expense, should be cancelled. Don’t stop paying on debt, as your credit rating can impact your employability – but minimize all payments. If you don’t need it, don’t buy it. Adjust your lifestyle. The number one thing you need to do, other than find work, is to minimize all of your expenses so that you have time to find new employment.
Good Luck to you. If we are one of the collection agencies calling on you, please immediately let us know about your change in employment status. Let us find ways to make this work for you, and keep you from dropping further into delinquency during your period of unemployment.
Till Next Time.