Losing a job is a traumatic experience that causes drastic changes to both your financial and psychological state. However, unemployment won’t stop your bills and debt from piling up. If recent changes in your employment status have affected your ability to pay your bills on time, here are some tips to help keep your accounts from going delinquent. 

Secure Unemployment Assistance

Depending on the circumstance of your joblessness, you may be eligible for unemployment benefits if you are partially or totally unemployed. So, if you find yourself jobless and without any option of keeping up with your debts, the first thing you should do is find out whether you are eligible for unemployment assistance. The amount entitled to each individual will vary from state to state, but any amount will help you from accruing late fees due to missed payments. 

Adjust Your Budget

Living on a strict budget is crucial to successfully repay your debts while unemployed. First, evaluate your financial situation, including emergency savings, and create a survival budget. Avoid making splurges and limit spending to only essential items like food, shelter, and utilities.

Talk With Your Creditors

Don’t wait until you’re in default to alert your lender that you are out of a job and cannot make your minimum monthly credit card payments. The earlier you contact them the better. Make sure they understand the severity of your financial situation, as they may offer hardship programs that can help you overcome short-term financial rough patches.

Some of the hardship programs at their disposal include:

· Deferred payment options

· Temporarily reduced interest rates 

· Lower repayment rates

· Flexible repayment dates

Always remember that, while these hardship programs are beneficial, they can come with their fair share of downsides — such as lowering your credit limit, freezing your account, or closing your account. Therefore, it is important to establish clear terms from your lender before enrolling in any of their hardship programs.

Let the Pros Negotiate on Your Behalf

If you are currently unemployed and stuck in debt, Progressive Debt Relief has your back. Our experience negotiating with debt collectors and payday loan creditors can help you get the best repayment terms and pay down your debt faster. For more information on how Progressive Debt Relief can help eliminate your debt, contact us today.