Many Americans have lost their jobs because of economic crisis that was held in 2008. There are still so many among them who are jobless.
This long term joblessness have a huge impact on the lives of people. Because of it, they are not having enough financial capacity to pay off their debts and loans. People who used their credit cards, have now zero income and it has become really hard for them to pay off their outstanding balances.
Well don’t be fearful, such matters are part of the life. Challenges come and go. But you have to take over them. Don’t take so much stress when you receive those reminder letters or phone calls from your creditors or debt collecting agents. Just keep one thing in mind that you have to eliminate your debt as soon as possible in a positive manner.
Here are some useful tips that can help you in solving your problem during your unemployment:
1 – Try to Find a Part time Job
Try to find a part time job if your outstanding balances on your credit cards aren’t high. When you have a part time job, it will be easier for you to generate some money that will help you in paying off the debts gradually. If your part time job will be paying you enough that you can payoff the minimum monthly payments for your credit card balances, your credit score won’t be affected. It is strongly recommended that when you are looking for a part time job then don’t be too choosy to select one for yourself.
2 – Try to get some loan from friends or relatives
When you see that your part time job income is not enough to pay off your debts then try to borrow some money as a loan from any of your friends, family or relatives. In this way you will only have to pay a very low interest rate or no interest on such loan. When you get a good salary job, then you can pay them back.
3 – Try to get a personal loan from a financial institution
That’s a fact, people sometimes feel shy to get loan from their friends or relatives. For such people who dislike getting a friendly loan, it’s suggested to them to try to borrow personal loan from any financial institution in the market. If you are having a good credit score then you can get a personal loan with low interest rate.
4 – Try to consolidate all your credit card debts
Aside from getting a personal loan, you can also consolidate all your debts into a new loan. Then you can utilize that new loan in paying off the existing debts. If it’s hard to get unsecured loan then try to apply for home equity loan if you owe any property.
5 – Do a meeting with your creditor for debt settlement
There is no need to be fearful, just be frank because your credit card debts is negotiable. Just contact with your creditors directly and request them for debt settlement. You can propose your creditor a settlement amount that you can afford. If you got approved by them, you will get debt free very easily.
6 – File Bankruptcy
That is the last option when all above mentioned things get failed. After this you will have to make a start right from zero to build your credit all over again.
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