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Out of Work and Out of Cash?

Posted in Spending & Managing Money on August 3, 2020

For anyone out of work, financial concerns are paramount. The chart below shows the high level of jobless claims in the first quarter of 2020. With an unemployment rate of around 20 percent, it isn’t hard to see why so many people are struggling. Trying to find enough cash to pay for essentials is a challenge. It’s no wonder, a substantial proportion of the population is looking for a solution to their money worries.

So, what are your options if you’re out of a job and out of cash? Here, we offer you some expert advice about steps to take.

Eliminating Unnecessary Expenses

When you lack money because of unemployment, looking at how you spend your money is key. The chart above shows some of the nonessentials you may be spending money on.

Take stock of your situation. Draw up a list of everything you’re currently spending money on. Identify which of those things are essentials and which are “wants.” Then be eliminate all the things you don’t need.

Prioritizing Remaining Expenses

If you don’t have any savings, prioritizing your essentials when you’re out of a job couldn’t be more important. Housing and food should be top priorities. Then tackle essential bills. Contacting your utility companies and asking for a budget plan can help. Many organizations are happy to be flexible if they know you’re struggling.

Making Minimum Payments

If you’re able to afford to make the minimum payments on your card balances, do it. Without making those payments, you’ll owe more interest and fees. Not only that, but you may negatively affect your credit score.

If you’re unable to make any payments, call your credit card company. Review your options with them. There may be solutions available to you that you can take advantage of.

Finding An Affordable Loan

Credit unions have become more prevalent and popular than ever before in the United States over the last four decades. The above chart shows just how far credit unions have come since 1972. Yet, many people are still unaware that they can use this source of credit.

Credit unions are different from banks because they’re member-owned cooperative institutions. Meanwhile, banks are for-profit, commercial enterprises. You aren’t a customer of a credit union. You’re a member. This means you’re able to usually obtain higher rates on savings and borrow money more cheaply.

Refinancing Your Home

If you refinance your existing mortgage, this may be an effective way to save on costs. Whether you want to reduce your monthly repayments or pay off your debt more quickly, refinancing can help.

Coping In A Financial Crisis

Losing your job can be a worrying time, especially when you have debts and bills to pay. However, it’s always possible to get through a financial crisis. Your local credit union can help you. Contact CDC Federal Credit Union now to learn more about how we can assist you.

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