4 Ways to Stay out of Debt While Unemployed

Sherin Dev, Professional Investor and editor of MoneyHacker. Started on 2007, MoneyHacker posting vital lessons in wealth creation, protection and lots of personal finance topics.. More about Sherin...

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HAVE YOU RECENTLY LOST YOUR JOB and are worried about being able to manage your finances? You might be worried that your monthly expenses might be hard to manage while out of work, but there are a wide variety of things you can do in order to stay out of debt while unemployed. You might temporarily struggle but you can still manage to stay out of financial red until your situation improves. Here is an overview of four ways to stay out of debt while out of work.

Make payment arrangements

It never hurts to call your creditors and utility companies and explain to them your situation. If you have a good track record of paying your bills on time, some creditors might be lenient to allow you make payment arrangements on your credit card bills. Also, many utility companies, by law, have hardship relief plans that allow unemployed consumers to still make timely payments without worrying about their utilities being cut off. Don't be afraid to communicate and let your creditors know your situation.

Have a garage sale

Now is the right time to start clearing out closets and other spaces in your home that might be filled with things you simply do not need anymore. Whether it's old electronics, clothes, or furniture; have a garage sale to liquidate these items and use the cash to help manage your monthly expenses. If you do not want to have a full fledge garage sale, look into selling your items over sites like eBay or craigslist.

Short-term help

There are other financial strategies you can utilize in order to help manage your monthly expenses. Short-term payday loans are becoming a popular tool to help millions of Americans keep afloat and avoid getting evicted, foreclosure or defaulting on loans. Working with a reputable finance company will allow you to get the best loans suitable for your needs - don't be afraid to borrow money for the time being.

Scale back

Sometimes we all have monthly services that we simply do not "need". Whether its a high-end gym membership, a big cable television package or a routine of hitting up restaurants over the weekend; begin to scale back. Call your cable provider and get the most basic package. Cut back on your weekend entertainment budget and take advantage of services like Netflix and Red Box.

In the end, do not let being unemployed scare you into thinking that it will be difficult to avoid debt. Many people manage to keep up their monthly household expenses while out of work. Just be patient and frugal and in no time you will be back to work!

About Author:

This article was written by Dixie, a freelance writer who writes for business, finance, women's interests and the home niches. She received her advice on short-term lending and payment arrangements from the financial experts at San Antonio Power Finance. She lives in Arizona with her husband and 3 daughters.

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