Job Loss? Debt Burst Announces Tips for Better Debt Management
Reno, NV, October 5, 2010 -- No one expects or desires to lose a job. How does one plan for it or even deal with it? If someone has currently been laid off or think they might be soon, gathering the right information and financial tools can help them take control of their money and make sure it goes where it’s most needed.
Anyone’s initial reaction to being laid off can bring feelings of fear, anger, disbelief and sadness. It’s important to acknowledge those feelings, but move beyond them to take control of their situation. To do that, experts suggest important steps such as keeping the same daily routine, networking and utilizing employment job search engines such as Careerbuilder, Monster and Craigslist.
Here are some simple tips for people surviving or preparing for a layoff. The important thing is to deal with it now and make changes that will keep them afloat while they look for their next job.
Evaluate the finances
• Fill out Debt Burst’s free budget worksheet to determine the current financial situation.
• Track all spending that includes any use of debt cards which tend to get overlooked for smaller items. Track it ALL.
• List and organize all household bills, credit cards, loan and car payments, childcare, pet, personal and any other expenses.
• On a separate sheet track all sources of income including any alimony or child support. Also track IRAs, stock and 401Ks.
Analyze the spending
• Analyze the income versus the expenses this can be done side by side.
• Please download our budget worksheet for assistance.
• Determine the current situation and zero in on areas to save and cut back.
• Then come up with a final budget that can be used to pay important bills such as:
- Mortgage and rent - Need a place to live.
- Car payments- Need to get to interviews and eventually work
- Childcare- Some places will drop the space if the child is pulled out and then on finding a job, it will be a stress to look for a new daycare. It is best to work with the childcare and work out a plan. Maybe pay less to keep the child’s spot.
- Basic Utilities- Need the basics to survive.
- Groceries- Need money for food and cleaning materials so have the basics covered but cut back and use coupons whenever possible. Take advantage of sales such as buy 1 and get 1 free and maybe change the store to get even better deals.
Work with the creditors
• Reach out to all the creditors and let them know about the present situation. Many of them have hardship/deferment programs- These are programs to assist those in need who have suffered a hardship.
- These programs normally defer (stop) the payments for and agreed upon time.
- Other programs have reduced monthly payment down to something that is affordable in the current circumstances.
- Please note that interest will still be applied.
- There is a time limit and requirements such as proof laid off and so on.
• Ask to enroll in their special program and find out what requirements are needed such as proof of being laid off, medical reasons, new baby and so on. The creditors will let you know what they need.
• Don’t delay in letting them know or supplying the information. They may delay payment immediately even while you get them the documents.
• Determine how long this program will last and allocate money appropriately.
• Keep the creditors informed of the situation. Work with them and they will work with you.
Fast Money- BEWARE
• Need money fast? Think hard about taking out a personal loan to pay off bills.
- The interests rates and fees are higher, the money might help in getting out of the current loans but it would be more costly than the current situation and will put more stress on finances, making recovery a distant possibility.
- Thoroughly look at Payday Loans and understand the requirements before taking one.
Reach out to family and friends
• Reach out to family and friends who can assist.
• Only borrow what is needed and small amounts are best to avoid feeling guilty for asking.
• If possible, pay them off a little at the time. It shows good faith and the seriousness about paying them back.
• Keep the money lenders aware of the situation and don’t take advantage of them.
• Some family members may just give the money as a gift. Please make sure to show appreciation by giving them flowers, candy, gift cards or taking them out for a meal once the financial situation is better.
Payoff and Save
• Once the monthly budget is determined, pay off any immediate bills and save money for a rainy day as they say.
• Put aside enough money to pay for the important bills like mortgage and rent and to buy the necessities in life.
• Try not to dip into 401K, IRAs, CDs and so on, those have payment penalties if one borrows against them early. Sometimes, they expect a pay back of the borrowed amount with interest.
• Once the outstanding loan is paid off, SAVE, SAVE,SAVE!
Developing a spending plan based on your new circumstances and prioritizing your debts will be important steps you take at this time. Don’t stress over your debt too much and focus on finding a new job or starting your own company if that’s the next best thing. You may also look into getting some training to take on a new job.
Contact Debt Burst today for more information on how we can help with debt management and help reduce the monthly payments or the overall debt owed.
About Debt Burst
Debt Burst creates programs for clients seeking both debt management and debt settlement debt relief solutions. They work with the clients to understand their needs and customize a plan to fit the client’s financial situation. With over 20 years of experience and commitment to the clients, Debt Burst helps clients manage their finances, take control of their lives, create a secure financial future and most of all become debt free. We are recognized leaders who have gone beyond the normal debt management and debt settlement services to offer assistance for our customers to maintain a debt-free and rewarding life. We are committed to excellence and strive for outstanding customer service and support. We’ve helped over 40,000 clients and settled over $1 million dollars of debt over the past three years.
Checkout what Debt Burst has to offer and learn more about our services at www.debtburst.com or call Debt Burst Today at 800.656.6204
- Contact Information
- Sam Magi
- Debt Burst
- Contact via E-mail
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