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Did you know?

91% of undergraduates have at least one credit card

Qualified Debt

  • Credit Cards
  • Collections
  • Unsecured Loans
  • Autos Repossessed
  • Unsecured Personal Loans
  • Unsecured Personal Lines of Credit
  • Medical Bills

Unqualified Debt

  • IRS Debt/Taxes
  • Utility Bills
  • Home Loans/Mortgages or Home Equity
  • Auto Loans
  • Student Loans
  • Government Loans
  • Secured Debts
  • Apartment Leases/Rent
  • Consumer Electronics & Furniture
  • Payday Loans

You can handle your debt after losing a job

No one expects or desires to lose a job. How do you plan for it or even deal with it? If you are currently laid off or think you might be soon, gathering the right information and financial tools can help you take control of your money and make sure it goes where it's most needed.

Anyone's initial reaction to being laid off can bring feelings of fear, anger, disbelief and sadness. It's important to acknowledge those feelings, but move beyond them to take control of your situation. To do that, experts suggest important steps such as keeping the same daily routine, networking and utilizing employment job search engines such as Careerbuilder, Monster and Craigslist.

Here are some simple tips for surviving or preparing for a layoff. The main thing is to deal with it now and make changes that will keep you afloat while you look for your next job.

  • Evaluate your finances
    1. Fill out our free budget worksheet to determine your current financial situation
    2. Track all your spending that includes any use of your debt cards which tend to get overlooked for smaller items. Track it ALL.
    3. List and organize all household bills, credit cards, loan and car payments, childcare, pet, personal and any other expenses
    4. On a separate sheet track all sources of income including any alimony or child support. Also track IRAs, stock and 401Ks
  • Analyze your spending
    1. Analyze your income versus your expenses this can be done side by side.
    2. Please download our budget worksheet to assist you
    3. Determine your current situation and where you can save or cut back
    4. Then come up with your final budget that can be used to pay important bills such as:
      1. Mortgage and rent- Need a place to live
      2. Car payments- need to get to interviews and eventually work
      3. Childcare- some places will drop your space if you pull your kid out and when you find a new job, then you’re looking for new daycare causing more stress so work with your childcare and work out a plan. Maybe you can pay less to keep his or her spot.
      4. Basic Utilities- Need the basics to survive
      5. Groceries- need money for food and cleaning materials so make sure you have the basics covered but cut back and use coupons whenever you can. Take advantage of sales such as buy 1 and get 1 free and maybe change the store you shop at to get even better deals—Grocery Outlet
  • Work with your creditors
    1. Reach out to all your creditors and let them know about your situation. You will be pleasantly surprised how many of them have hardship/deferment programs- These are programs to assist those in need who have suffered a hardship.
      1. These programs normally defer (stop) your payments for and agreed upon time
      2. Other programs reduced your monthly payment down to something you can handle at times you’re paying less than half your bill
      3. Please note that interest will still be applied
      4. There is a time limit and requirements such as proof laid off and so on.
    2. Ask to enroll in their special program and find out what requirements are needed such as proof of being laid off, medical reasons, new baby and so on. Your creditors will let you know what they need
    3. Don’t delay in letting them know or supplying the information. They may delay payment immediately even while you get them the documents. Let those creditors you know have assistance programs that you’ve lost your job.
    4. Determine how long this program will last and allocate your money appropriately
    5. Keep your creditors informed of your situation. If you work with them, they will work with you
  • Fast Money- BEWARE
    1. Need money fast? Think hard about taking out a personal loan to pay off your bills
      1. You could suffer from higher interests rates and feesv
      2. If you try to get out of these loans it could be more costly than your current situation and putting more stress on your finances
      3. Thoroughly look at Payday Loans before taking one to make sure you understand the requirement
  • Reach out to family and friends
    1. If you notice your financial situation is rough reach out to family and friends who can assist you.
    2. Only borrow what is needed and small amounts are best so that you don’t feel guilty for asking.
    3. If you can, pay them off a little at the time. It shows good faith and that you’re serious about paying him or her back.
    4. Keep those you’ve borrowed from aware of your situation and don’t take advantage of them because you never know when you will need their help again.
    5. Some family members may just give you the money as a gift. Please make sure to show your appreciation by giving them flowers, candy, gift cards or taking them out for a meal once you’re on your feet again.
  • Payoff and Save
    1. Once you’ve determined your monthly budget, you should pay off any immediate bills and save money for a raining day as they say.
    2. Put aside at least enough money to pay for the important bills like your mortgage and rent and to buy the necessities in life.
    3. Try not to dip into 401K, IRAs, CDs and so on those have payment penalties if you borrow against them early. Sometimes, you have to pay back what you borrowed with interests.
    4. Once you payoff what you need, SAVE, SAVE,SAVE!

Developing a spending plan based on your new circumstances and prioritizing your debts will be important steps you take at this time. Don't stress over your debt too much and focus on finding a new job or starting your own company if that’s the next best thing. You may also look into getting some training to take on a new job. Most of all, we care and are there for you in your need. Contact Debt Burst today for more information on how we can help you with your debt and help reduce your monthly payments or your overall debt owed.

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Call Debt Burst Today at 800.656.6204 or fill out our quick and easy form