Since the global economy crisis in 2008, many Americans are still jobless until today.
The long term joblessness has a big impact in their life because they are unable to pay off their loans and debts. As a credit card holder, when you have zero income, what can you do to pay off your outstanding balances?
It is no point to be fearful and stressful when you receive reminder letters and phone calls from your creditors or debt collection agents. The most important thing is to eliminate your debt as soon as possible in a positive manner.
Here are 6 useful tips you can apply if you want to get rid of your debt during your unemployment:
Tip No.1 – Look for a part time job
If your outstanding balances on your credit cards are not too much, you are advised to look for part time job to generate cash to pay off your debt slowly. Your credit score will not be affected as long as your part time income is able to cover your monthly minimum payments. For people who are currently unemployed, you are advised not to be too choosy when you are looking for the odd job.
Tip No.2 – Look for a friendly loan
If your part time income is not sufficient to pay off your debt, you are suggested to look for friendly loan. In general, you are required to pay very low interest or even zero interest for the friendly loan you borrow from your family members, friends or relatives. When you have got a new job, then you can repay your loan.
Tip No.3 – Look for a personal loan from a financial institution
Sometimes, people feel ashamed to borrow from someone they know. If you dislike getting friendly loan, you are encouraged to obtain personal loan from any financial institution in the market. If your credit score is good, getting a personal loan with low interest rate is possible.
Tip No.4 – Consolidate all your credit card debts
Besides personal loan, you can consider consolidating all your debts into one new loan. Utilize the new loan to pay off all your existing debts. If it is hard to obtain unsecured loan, you can apply for home equity loan if you own a property.
Tip No.5 – Negotiate with your creditor for debt settlement
Be frank, credit card debt is negotiable. You are encouraged to contact your creditors directly to request for debt settlement. Propose to your creditors a settlement amount which you can afford. Once you obtain approval from them, you can become debt free.
Tip No.6 – Declare bankruptcy
This will be the last solution if you really can't obtain any fund and your creditors refuse to accept your settlement proposal. What you need to do is to file bankruptcy and start building your credit all over again.