Contact Your Mortgage Provider Right Away
If you are broke and unemployed and you happen to be paying your mortgage, your main problem is probably making sure that your mortgage stays current. The worst that could happen if you default on your credit card is being taken to civil court. But, a default on mortgage may mean that your lender might start some foreclosure actions that might make you lose the house.
The good thing here is that most mortgage lenders in general want to stay away from the potential losses and expense they face during foreclosure. This means that they will be more willing to sort things out with you to ensure that you dont default. It is especially true when you call them early o before you start missing out on your payments.
It is rather common for most mortgage lenders to grant homeowners with forbearance. This is where they temporarily stop or reduce your payments every month while you are on the process of getting back on your feet. It can save you from the stress of losing your house and reduce the bills you need to worry about.
Which Debt Solutions Work When Youre Unemployed
When you cant afford to make your payments, then you start looking for alternatives consolidation, credit counseling, debt settlement, and bankruptcy. However, the truth of the matter is that if you have absolutely no income to make payments or cover fees, then most of those options wont work for you. Youll need to get a job first, then focus on getting back to stability when it comes to your debt.
Prepare To Show How Memorable Qualified And Likeable You Are
Create an application that stands out. Tailor your application to each job because a generic resume shows a lack of effort. Make the recruiters job easy and make yourself the obvious choice.
Its fantastic to role-play an interview with someone. There is nothing worse than drawing a blank when you get the inevitable tell me your strengths and weaknesses question. You need to have the answers on autopilot to get across to the interviewer how right for the role you are in the short space of time you have.
Research the position you are applying for to ask some questions of your own to clarify if this is the role for you. Because that is the thing with looking for work, how do YOU feel about your interviewing company?
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Consider Taking Out A Loan
While you shouldnt rely too much on loans during unemployment, they can be an option to help you bridge a short-term gap between your income and your expenses. These might include home equity loans, personal loans or additional lines of credit.
Dont be afraid to seek out a lifeline when you need one. Still, make sure that youre not biting off more than you can chew by borrowing more than you can pay off later or getting into deeper credit card debt.
Fake It Until You Make It
I remember it being hard to keep my chin up and stay positive when looking for work. But it was a case of plastering a smile on my face each time I approached a prospective employer. After all, they dont want to hire you if you are low on energy and lacking enthusiasm. So, even if you are not feeling it, youve got to fake it until you make it. Give yourself a talking to and appear happy and confident even if you are not. Because when you DO land the position of your dreams, you will feel happy and confident for real.
The best feeling in the world is when you secure a position. Its THE best feeling. You did it, you made it!
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What To Say When You Contact A Lender
When contacting your lenders, be prepared to explain:
- Your financial and employment situation
- How much you can afford to pay
- When youre likely to be able to restart regular payments
- Your income, expenses and assets
Be sure to get confirmation of any agreements in writing.
Payday Loans Cash Advance Loans And Short
Another solution you may be considering during a period of hardship is any no-credit-check loans. These are loans that tout the advantages of getting cash in your account within 24 hours, no credit check required. This can sound great. You dont have the income to qualify for any traditional loans, so you turn to the alternative financing solutions to get the cash you need.
However, just because you can use AFS to get the cash you need, it doesnt mean that you should. These types of financing solutions come with two huge problems:
Finance charges
Its not uncommon for these types of loans to have interest rates over 200% or even 400%. You can also expect to pay about $30 for every $100 you finance. These loans have excessively high costs and if you dont have a job to pay the loan back within the first two weeks of taking it out, those costs will stack up quickly.
ACH direct debit
The other issue is the ACH direct debit that most of these loan systems use for payment. They connect to your bank account to direct deposit the funds you receive, then they direct debit the payments from the same account. This can create issues with your bank account. ACH payments can be hard to stop and most AFS lenders make it extremely difficult, if not impossible, to stop those payments. Theyll drain your bank account and stack up NSF and overdraft fees.
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Medicaid Chip And Insurance Plans Through The Marketplace
When you fill out a Marketplace application, youll find out if you qualify for any of these types of coverage:
- A Marketplace insurance plan. You may qualify for premium tax credits and savings on deductibles, copayments, and other out-of-pocket costs based on your household size and income. Some people with low incomes may wind up paying very small premiums. Learn about getting lower costs on a Marketplace insurance plan.
- Medicaid. Medicaid provides coverage to millions of Americans with limited incomes or disabilities. Many states have expanded Medicaid to cover all people below certain income levels. Learn more about Medicaid and how to apply.
- Childrens Health Insurance Program . CHIP provides coverage for children, and in some states pregnant women, in families with incomes too high for Medicaid but too low to afford private insurance. Learn more about CHIP.
After you finish your Marketplace application, youll get an eligibility determination that tells you what kind of coverage you and others in your household qualify for.
What To Do When Youre Broke And Unemployed
SO youre 20-something, you made it through the ball of confusion that high school was, you made it into your dream university then discovered it was actually hell to go through, you embraced the sleepless nights doing assignments and studying super hard and youve finally reached the finish line, graduation.
Good for you, youve already done better than all the people just sitting at home, doing nothing with their lives, right? Well, you could say that. Now youre out in the big bad world but as smart and hardworking as you are, you still havent been able to land an interview, call back or even a we regret to inform you e-mail from the hundreds of companies youve applied to.
So, basically, you are sitting at home with your virtual diploma or degree right now. You are broke because you dont have a job and your parents have no reason to give you money anymore because youre off campus. You probably have student loans that need to be paid and social media is the worst because you are lying in bed watching some of your classmates get their dream jobs and start their lives officially, and you? Well, youre slowly but surely sinking into discouragement and depression. Life sucks, however, it doesnt have to be this way.
There are many things that you can do to get your mind off the failure you feel is ahead of you, while preparing yourself for your turn to shine in your career path and I am going to give you pointers on how to achieve this.
1. WORK IN YOUR OWN CAPACITY
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Whether Its Due To Economic Uncertainty Or Self
Welcome to unemployment! Ive been unemployed against my choice, and Ive been unemployed because I chose it.
The first time I found myself unemployed was on Day #1 of my very first job. And it wasnt my fault! For reasons that my 47-year-old self can no longer remember, I had decided to become a dog groomer, and straight out of school I secured a job in a salon. I was very excited! However, on my first morning at my brand new job, war broke out between the salon owners and before morning tea, they were neither a couple nor business owners anymore. They shut the door for good!
I was 18, unemployed, and shell-shocked. What a welcome to the workforce, huh?
Pause Reflect And Redirect
Unemployment is a brief spell most people go through where you are forced to stop and reflect, and it is a period most of us experience at some point in time. Use the time to take a break, get some rest and then gear up for the job hunt. Take the career break as an opportunity to dream and then redirect your energy and work towards achieving it.
Unemployment is just a phase to move through on your way to a job you love.
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Can You Get Approved If You’re Unemployed
It is possible to get approved for a personal loan if you’re unemployed, says Doe.
“Being unemployed does make the process more challenging. From the lender’s point of view, they want to lend money to an individual who they believe can pay the funds back,” she says. “So if you’re in a situation where you don’t have money coming in, it may be challenging for you to pay them back. If you have a history of paying down your credit cards and other past debts on time, that will lend itself to your favor.”
Also keep in mind that income doesn’t always necessarily come from a traditional paycheck. According to the IRS, other ways to show earned income can include gig economy work, money made from self-employment, benefits from a union strike, some disability benefits and nontaxable combat pay.
And of course, it’s very important to make sure you feel comfortable with the impact a loan repayment plan could have on your finances. Under some circumstances, you may not have any other choice but to take on more debt until you can improve your situation.
Take the time to consider how much of an impact the monthly loan payments will have on your overall budget. In some cases, the extra financial obligation is worth it to pay for an emergency, like a car repair so you can commute to and from new job interviews. In other cases, taking on additional debt may not be the best decision.
Save On Your Electricity Bill
People in personal finance love to espouse the importance of saving on electricity and until now I never really took them seriously. But the truth is that Americans typically spend $2,000 per year on utilities and even the smallest changes can save you up to 25% on your monthly bill.
The basics? If its sunny out, open your curtains and work by daylight, unplug everything youre not using, and dont leave your lights on unnecessarily. Read this list if you need inspiration on where you can cut back.
That said, many utility companies are also offering bill assistance and foregoing shutoffs. Look into what your provider is offering and contact them. You never know how theyll be able to help!
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I’m In Debt With No Job And No Money What To Do
Chloe Meltzer | October 19, 2022
Summary: Did you recently lose your job? Not sure how you’re going to manage your debt with no job and no money? Find out what you can do to get back on your feet again.
If you are suffering from debt and you are unemployed with no savings, it can be very stressful. Although you might feel hopeless, you have options. One of these options could be a credit card, but this is usually a bad idea. Many credit cards will allow you to make a minimum payment and carry credit, but it will lead to cumulative interest. This can add a huge amount of debt on to your plate. There are a few courses of action you can take in this situation.
Pandemic Emergency Unemployment Compensation
What is Pandemic Emergency Unemployment Compensation ?
PEUC is a federal Continued Assistance Act program that extends benefits to those who have exhausted state unemployment benefits. This benefit ended September 4, 2021.
What does it mean to exhaust state unemployment benefits?
A person exhausts state unemployment benefits when he or she either draws all available benefits that could be paid, or reaches the end of the benefit year and is not monetarily eligible for a new benefit year. Also, the individual cannot be eligible to file a claim in any other state.
How long does PEUC run?
Under the March 2020 CARES Act, the PEUC extension program allowed an additional 13 weeks of benefits and the program expired on December 26, 2020. The Continued Assistance Act extended this program to expire the week ending March 13, 2021. Under the new American Rescue Plan Act of 2021 , the PEUC program expired the week ending September 4, 2021.
How do I apply for PEUC?
Once your state unemployment claim has a zero balance, you can apply for PEUC on our website at www.GetKansasBenefits.gov.
PEUC applications can only be filed online at this time.
Do I have to apply for the extension provided under the new ARP Act?
No. If you were previously filing for PEUC benefits, you do not have to file a new application for the additional weeks. You just need to continue filing weekly claims each week you are unemployed.
How much does PEUC pay each week?
PEUC is available for the following periods:
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Contact Any Other Lenders
It is not just your mortgage lender you need to inform of your unemployment. You will need to make arrangements with any lender you owe payments to. You can simply call them to inform them of your situation, and ask if there are any options that may help you to pause or reduce your payments while you look for work. The worst thing you can do in this scenario is to ignore the problem and hope it goes away. Avoiding the scenario could lead to more severe consequences like harassing collection calls and even wage garnishment. If you take a proactive and communicative stance with your lenders, it will help. The worst case is that you will still need to make your payments, but you could stop your payments temporarily, or even reduce them in the best cases. If you have car loan debt, your car lender may offer forbearance so that you can be relieved of the risk of repossession.
Im Having The Best Year Of My Life During A Pandemic
Ive been broke my whole life so its really weird. The one emotion I wasnt expecting was guilt.
But its what I always wanted. Human concocted numbers on a screen that somehow give me more power. The power to do whatever I want to do for the second half of my life.
Five years ago I was in a dead end job, making less money than all of my friends. My skills were outdated. I was forty.
I didnt know how to build a website. I didnt know anything about business. I wasnt on social media. I didnt know anything.
I didnt even have any ideas.
All I had was a rock bottom realization. I knew I would never be happy following the same path that the world had laid out for me so far.
Plus I was going to be broke forever as a print magazine graphic designer.
I tried entrepreneurship in my twenties. It didnt work out. I was terrified to try again. I had already been thoroughly beat down and put back in my place several times.
Your just an average guy probably more like below average. You cant make it on your own. I already had plenty of proof.
Im forty years old and probably have half my life to go. All my friends are starting to coasttalking about when they get to retire.
Whats wrong with me?
The day I finally willed my hand to paper to write down my goals was the scariest self-assignment of my life.
It seemed like it should be such a simple exerciseSo why does every bit of me cringe at the idea?
But I knew I had tried that. I tried it for forty years.
This is stupid
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Manage Credit Cards Wisely While Unemployed
If you can afford to pay your monthly payments while unemployed, then you should. If you cannot, then you should look into one of the other options. The same can be said for use of your credit cards. If you can afford to use them, then you can, but it is not a good idea to use your credit cards if you are unable to pay them off each month.
It may also be tempting to obtain new cards in order to have a larger line of credit. This is a bad idea because it will only add to your surmounting debt. By doing this, or not paying off your balance at the end of the month, will only become more costly. The best option is to stop using credit cards until you get a job once again.
