Unemployment finance and debt
Dealing with unemployment, financial trouble & debt
In times of unemployment and when finances are at their most stressed, it can almost seem as though the universe knows and begins throwing every possible utility bill and due finance payments at you and then just as you thought you were on top of all of your expenses another wave arrived in your letter box!
Knowing how hard it can be during these times, we have listed a number of items to be weary of and some suggestions to help you get through between jobs and while you are unemployed.
Coping with credit card debt
Credit cards can be a life saver as well posses a sting in its tail as credit card debt can easily sneak up on you due to the ease of access to the funds.
“what happens if the term of unemployment is longer?…”
During periods of unemployment, many people can rely on their credit cards to get them through financially, however what happens if the term of unemployment is longer than what your credit cards can sustain your financial needs?
Suddenly, you could find yourself answering calls from a credit agency due to missed credit card monthly repayments and just like that, your financial stress has just been compounded.
“Use your credit card funds sparingly…”
So what can you do? Use your credit card funds sparingly and with caution while keeping in mind if you do use your credit card to get you through your term of unemployment that credit card cash advances usually attract interest charges from the time you withdraw the funds and some credit cards can have interest rates of up to 25% and in some can be even higher.
Ability to pay your mortgage debt
If you are currently paying off a mortgage and have become unemployed with no immediate employment prospects and no income protection or backup funds, you could be facing a potentially dangerous financial position.
Acting now is extremely important and notifying your bank or financier you have your mortgage to let them know of your situation and to see if what leniency they may have (if any)
If you are unable to make your mortgage repayments, the bank has the ability to seize the financed property for liquidation, which will be auctioned off at whatever price with the mortgage still liable for any difference in price.
Create a second income and reduce debt fast
If you have found your self facing unemployment or are now unemployed, maybe this is the time you could begin creating a second income which could be a saving grace during shaky unemployment rates.
There are many ways to start earning second income and most of which you could start from home and from your living room and does not have to impede on your efforts of looking for full time employment.
Work from home second income ideas:
- Filling out online surveys
- buying and re-selling on eBay
- online article marketing
- Google adverting (Google Adsense)
- Uploading stock photos and more!