Managing debt is difficult enough during normal circumstances, but even more so if you happen to be unemployed. However, being out of work doesn’t mean it’s impossible to manage your debt. In fact, there are several strategies to help you lessen and perhaps even settle your debt while you are between jobs.

Continue Making Minimum Payments

If possible, try and continue making minimum payments on your credit cards and loans to avoid late fees and protect your credit score. Maintaining your credit score is essential in ensuring you’re able to get competitive interest rates in the future since payment history is the most important factor that goes into a credit score. If it helps, treat minimum payments like a necessary expense, like you would for food or housing.

Create a Budget

Making a reasonable budget to stick to while you’re unemployed can help you visualize exactly how much money you should put into your different expenses. Try to remain firm, but realistic so that you won’t end up spending more than necessary. Creating a budget that is highly personalized to you and your lifestyle is essential, as there is no one-size-fits-all method. The most important part of budgeting is finding categories that you’re able to cut back on. Expenses like housing and utility bills will most likely remain the same, but categories like personal care and entertainment can often be adjusted.

Debt Consolidation

Debt consolidation is a common method of debt refinancing that has one taking out one single loan to pay off several others. This will ease the process of paying off debt, as the new debt comes from a single source rather than multiple, and often has more favorable payoff terms that may include a lower interest rate and/or a lower monthly payment. There are two different types of consolidation loans, secured and unsecured, and it’s important to work with the right financial experts to figure out which is a better solution for you.

Debt Negotiation or Settlement

Debt negotiation, often called debt settlement, is a very effective way of handling debt that seeks to forgive a portion of the amount to be paid off. Debt settlement looks very different for a variety of people, as everyone has a different situation, but it is often successful in erasing a large chunk of the debt, sometimes even up to half. This is often a great option to choose if you’re handling debt while unemployed, but it’s essential to seek help from financial experts to successfully do it.

Settle Your Debt for Good

There are many different ways to handle debt but putting your trust in debt management professionals will always yield the best results. At Progressive Debt Relief, our financial experts have the right experience to create a personalized plan to help you settle your debt efficiently and discreetly. We offer free consultations and no upfront fees to ensure that you’re not burning an additional hole in your wallet to take care of any debt problems you may be facing. To schedule a complimentary consultation, contact us today.