The unemployment rate in the United States was last reported at 9.1 percent in August of 2011. If your jaw has dropped in shock, then you must be relieved to know it’s a decline from the last year, when the unemployment rate rose to above 10%. A number of people lost their jobs due to the recent economic meltdown, recession, and downsizing and for obvious reasons these unemployed people are forced to get into debts. Being unemployed and at the same time stuck in huge debt, they had quite a tough time paying their outstanding debts than people receiving a steady paycheck. If you are presently jobless and carrying a huge credit card debt, credit card consolidation may be an ideal solution to your debt problem. Although it may seem a little hard, but it’s possible to get out of debt when you are unemployed, provided you work with serious dedication and are prepared to make some sacrifices. Read on to know the following ways to combat debts, when unemployed.
Sell excess items
Selling your excess items, electronics, clothing, books, toys and antiques all the stuff that sits untouched in your attic or storage shed, is one way you can pay off your debt, while unemployed. Sell them on Internet auction sites or Craigslist or e- bay or hold a garage sale to get rid of small-ticket items as well. Sell those items you no longer need or use, and put the money towards paying down your due bills. If you have car debt, you can sell the car to eradicate the loan and can use some of the money to buy an inexpensive, functional car for the time being.
Live within Your Means
When you are unemployed and trying to pay off debt, you can not afford to go into more debt. Therefore, stop using your credit cards, and use debit card or cash in order to spend less money. You can still survive financially, without a regular paycheck, if you can bring in money through government unemployment checks or odd jobs here and there.
Embrace frugal living and make some drastic changes to your spending habits. Curtail all unnecessary expenses, such as cable TV and costly dining out. If possible, consider moving in with a friend or family member to save money on rent or mortgage payments. Instead of buying books or going to the theater, lend books and cd’s from library. You better start using inexpensive public transportation, rather than traveling through an auto loan, gas and insurance. If you have to arrange for a party, go for a potluck one where every member contributes equally. Most importantly, make sure you use all of the money you have saved towards paying down your debt only. These changes might be difficult to cope up with at the beginning, but once you get used to them, you might enjoy living frugally and will develop good habit of saving throughout your life. After all you never know when you become employed again.
Make use of all debt assistance programs, for which you might qualify while unemployed. Often government and mortgage companies arrange for various mortgage assistance programs for unemployed, which aim at reducing the mortgage payments in order to help the consumers to pay off their debt. Sometimes even the Credit card companies also offer special programs to reduce the monthly payments or interest charges for the consumers. All these can make the debt payment process much easier and faster, even if you are unemployed.Tags: spending unnecessary money phrases, spending habits, can u sell items on craigslist while unemployed, debit card