The situation before and after job loss, is very stressful. This can put a financial stress on you and your family. While you’re looking for a new job, it’s important to develop a strategy for dealing with your credit card bills. If you have recently lost your job or you think there may be any recent layoff, it’s important to have a plan in place to prevent your financial situation crumbling under this pressure.
Handling your credit cards efficiently
There are some basic principles according to which you should use your credit cards. However, these principals break when the job loss is looming large on you. But still you need to handle this situation and get out of this stress. There are various ways in which you can do this.
1. Use your credit cards lowly – If you have lost your job, use your credit cards lightly. With more usage the debt amount is going to grow out of control.
2. Maintain tight budget – Maintaining a budget is very important. It can save you extra expenses. Also, prioritize your expenses. Set up a list of your monthly expenses along with credit card bill payments.
3. Generate new income – If you are going to lose a job or may be lost it, you need to generate new income. In all probability you will qualify for unemployment benefits. Check your state laws on unemployment benefits and how to qualify for that. Unemployment benefits and the guidelines vary from state to state. It is very important to contact your local employment office.
4. Part time jobs – You can try to get some part time jobs or side jobs to pay off your credit card bills.
5. Negotiate repayment plans with creditors – With loss of income you will face difficulty in keeping up your credit card payments. So, talk to your creditors about your financial crisis and negotiate with your creditors and lower the monthly payments. If you had always been a regular on-time payer, the creditor might agree to your requests.
6. Build up emergency fund – Make minimum payments on your credit cards for some months, and lower your expenses as much as possible. Save all extra money. You need to do this when you are already aware that you are going to lose your job. Later, you can increase the card payments according to your situation.
All of these strategies can help you in dealing with the financial crisis before and after job loss.