It is not easy to deal with things when you are unemployed or broke. Even managing the daily expenses seems like a nerve-wracking task and just thinking about the old debts starts giving a nightmare. This was all about the financial burden that comes along with redundancy but this is not only where it ends. Being unemployed takes an emotional toll in a person and the person has to deal with stress, despair, loneliness, guilty, and many others.
Nobody likes to be under the burden of any debt and the situation gets worse if you don’t have a job. You have to deal with your daily expenses, rents, bills, and monthly expenses with little money that seems to deplete rapidly. However, there is still a ray of hope and you can survive this hardship if taken effective measures. You can go for guaranteed loans, consolidate your old debt, freelancing work and many others. In this blog, we have prepared a list of 5 effective tips that can help you handle your old debt even if you are unemployed. So let us get started.
Useful tips to keep yourself financially balanced when you are unemployed
Come up with an emergency budget
Generally, people have a monthly budget and follow it strictly in order to keep themselves financially balanced. They want to control their money instead of the money controlling them. Thus, now it’s time you stop managing your expenses in your head and prepare a budget as soon as possible. Not only it will help you in making better financial decision but will also give you an idea how much you are going to save at the end of the month which you can probably use to for your debt.
Control your urge to spend
You have to accept the fact that you no longer have a job and you should avoid overspending. This doesn’t mean that you need to start sacrificing from your daily needs but try to control your urge of shopping and spending big money on buying stuff that you currently don’t need or is not that hold not that much importance for now. Spend only where it is really required not on things and you can buy those things when you find a new job and you are back on track.
Take a loan
If the water has come up above the neck where it is getting really difficult in coping up with all the expenses, then you can apply for a new loan. Saving is not something that is going to last very long as you have so many things to take care of. If possible you can take borrow some money from your friends or families or your colleague. But if you don’t want to sour the relationship that you have between them, it is better that you can knock the door of the financial institution. Well, chances are strong that most of the banks and credit unions will reject your application seeing your current scenario. However, you can get the loan from direct lenders who provide guaranteed loans for unemployed people where you will need to present someone who can be your guarantor.
Look for an alternative source of income
Well, if you are having difficulty in finding a 9-5 desk job, then why not go for any other alternative source of income. There are plenty of websites that offer work from home facility and all you have to do is grab your chair and your laptop and get going with your online work. Other than that, you can also do any freelancing work like writing or designing or any other special skill of yours that you can monetize. Yes, it is true that you won’t be getting much money from these sources but still, it can prove to be a great helping hand during the time where you are in a dire need of financial assistance.
Use a new loan to end your old debt
It may sound weird to you but there are many people who apply for a new loan in order to end their old debt. There are many direct lenders in the market who provide loans for bad credit with no guarantor and unemployed. Thus, you can get the approval, even if you don’t have a guarantor and your credit score is not good. However, as the risk is higher in this case, you may be charged higher interest rate and the lender may also ask you to provide something as collateral.
Wrapping up, with all the tips mentioned above, you will surely be able to handle your debt along with your daily expenses when you are jobless provided that if you follow them carefully.