Unemployed And Can't Pay Your Bills?

According to the US Bureau of Labor, the national unemployment rate in the USA in October 2010 was 9.6% and has basically not changed since May 2010. More alarming is that the Bureau of Labor also says that 41.8% of those unemployed in the USA have been unemployed for more than 6 months. What can you do if you find yourself unemployed and unable to pay your bills?

The first thing to do is not panic. Take a serious look at your savings, income, and expenses. You need to know how much money you have saved, how much money you can count on coming in if you qualify for unemployment benefits, and how much your monthly expenses are. Ideally, you need to cut your expenses to less than your new (probably lower) income so that you do not run through your savings before you are back at work.

If you do not have savings and your new income is very low or nonexistent, things are more difficult. It’s not easy to find legitimate loans for the unemployed, but possibly you have family that can help you out. You may even have to stay with friends or family until you can find a new job. You should also check what social programs are available for the unemployed in your area. You may be surprised at the help available.

Many people find themselves suddenly in trouble with their creditors. Sure, it was easy to pay all of the loan payments and credit card payments when you were employed, but what do you do when your income is cut to less than half? Rumors are abound of a ‘credit card debt forgiveness act 2010‘ in the USA, but unfortunately the real credit card bill seems to have stopped short of actual credit card forgiveness. Often you can talk with your creditors, however, and they may have some sort of hardship program that you can qualify for temporarily until you get back on your feet.

No one can say when the economy will turn back around, but there are action steps you can take today to get your head back above water. The important thing is to calmly and logically assess your situation and the steps you can take to get back in control.