You have always been good with your money, but when you lost your job during the recent economic downturn, you were suddenly put in a frustrating, position. You had enough money to pay your bills, and unemployment helps you cover the essentials. Unfortunately, you don’t have enough to pay down your debt or make all of your minimum payments on time.
This is not a unique story, so it’s important for you to know that there is help for people like you in this situation. Bankruptcy is one possibility, but it’s not the only one. Here are three other options you may want to try before turning to bankruptcy to get out of debt.
1. Sell your own assets
If you think you can get a new job soon and have assets to sell, that[s a good way to get the cash you need to make ends meet until your first paycheck. Sell your extra television, your spare vehicle or anything you don’t need. That could get through a few more weeks without missing payments.
2. Talk to your creditors
The next thing to do is to talk to your creditors. If you signed up for insurance on your credit card, your debt might be forgiven completely if you lost your job. If not, you may still be able to negotiate lower fees and reduce your payments temporarily.
3. Ask for help from friends and family
Though asking for money might not be what you want to do, you may be able to ask friends and family if they have odd jobs or leads to help you get back to work.
These are three tips to help you as you deal with a sudden job loss. It is possible to avoid bankruptcy in many cases, but your situation is unique and may vary.