Debt management techniques that help if you’re unemployed or have recently lost a job

The following article highlights what you should know in order to handle debt.

13:46 02 January 2014

The loss of employment can be very disconcerting as you have to start from scratch looking for a source of income. Aside from the obvious psychological effects of a job loss, the financial ramifications can be seen very early on as reality sets in.

If you are to avoid this from happening, you should ensure that you plan ahead in order to deal with everything that comes your way.

1.    Use a debt relief company

The details of getting rid of debt can bog you down and having a reputable company to assist you in the process offers you a sigh of relief. However, as with any hiring of company offering consultancy services on a very tight budget, you should go for one that charges affordable fees. You can seek information from the internet and ask around for reputable services.

2.    Have your own personal budget

You should make sure that you intensely scrutinise your budget. If you can do it yourself, you save yourself money that you would have used to consult the debt relief company. Reorganise your expenditure in a way that you make out your excesses and you can remedy them accordingly.

3.    Critically examine debt consolidation programs

Losing your job is something that you can never really anticipate. The shock of it all might be just too much for you to handle. There are some consolidation programs that require one to be in a certain amount of debt. Look around for programs that offer favourable terms and conditions.

4.    Cutting back

If you have an inkling that the axe is coming, you should take steps to make sure that your spending habits are in check.

Mounting debt can weigh you down if you have lost your job and have no other revenue stream to fall back on.

Be prepared.