Things to Do If You Are Unemployed and Can’t Pay Your Bills

So many people struggle with paying bills even when they have a job. This may be because what they earn is not enough to cover all their bills or maybe they’re just living above their means. Then imagine how difficult it must be for people who don’t have a job to pay their bills. There is a popular saying that “bills don’t care”. As long as you are an adult, it doesn’t matter if you have a job or not, the bills keep piling up. In reality, the only way to avoid paying bills is either you are a child, or you’re dead. Losing your job can trigger a range of emotions like anger, fear, and sometimes resentment. When you are unemployed, paying bills may become too scary especially if you’re running low on funds. Managing your finances also becomes very difficult and you may be searching for ways to handle the situation. If you fit into this narrative, the good news is even though your situation may be difficult, it’s not hopeless as there are ways to salvage the situation before it gets out of control. As an unemployed individual, there are a couple of things you can do to help you with your bills. Let’s consider them.

Financial Solutions For When You Are Temporarily Unemployed And Can’t Pay  Your Bills For A Short Time

If you are just unemployed for a short time may be due to an emergency  or you just lost your job temporarily, then you can consider any of these options to help with your bills

• Emergency Loan Options To Pay Bills – A loan is a good option when you need to cover urgent expenses. With a good credit score and a good credit history, you can have access to short-term loans and pay up later when your income comes in. Interests are charged on the loans as agreed upon. Emergency loans may include personal loans, credit cards, payday loans, cash advance loans.
• Talk To Your Creditors – When you are unemployed temporarily, it is important that you talk to your lenders. Reach out to them as this may be of great help to you in time of emergency especially if you have been working with them in good faith for a long time. Talking to them can provide you with options.
• Get A Side Job To Help With The Bills – Getting a side job will help you weather the storm when you lose your main job temporarily. Your side job should be flexible so that you won’t have a problem combining it with your main job. Jobs like freelancing or pizza delivery will help you with the bills in a time of emergency as they are very flexible and easy to establish.
• Conducting A Yard Sale – Selling some of your stuff can help you solve some pressing financial problems. You should consider selling those things that have value but you don’t really need. Selling things like artifacts, electronics, old toys, jewelry can fetch you the money you need to take care of your bills
• Make Only The Minimum Payment For Your Bills – Try to review any automatic charges for bills because although automatic payments can be very helpful, sometimes they can exceed the minimum amount payable.
• Try To Regulate Those Bills You Can Control – Bills like electricity, television subscription, transportation, phone usage, WiFi can be controlled by you. Reducing or cutting them off expenditure can free up some funds for you to take care of other bills you may have. 

Financial Solutions For When You Are Unemployed For A Long Time And Your Bills Keep Piling Up.

If you are facing unemployment for a prolonged period, it becomes very difficult for you to pay your bills therefore the bills will just keep piling up. If that’s your situation, here are some practical solutions for you.

• Inform Your Lenders About The Situation – It is always better you let your lenders know about your situation as regards your employment status as soon as possible as this will help them understand when you default or delay payment. For instance, contacting the federal loan provider can usher in options like a new repayment plan or loan forbearance. Also informing your mortgage provider about your unemployment situation can fetch you a lower monthly payment or refinancing assistance.
• Consider Looking Into Assistance Programs – The government and some non-profit organizations have some programs that help those that are battling with financial problems. Programs like TANF (Temporary Assistance For Needy Families), SNAP (Supplemental Nutrition Assistance Program), etc. Exist to help families struggling with financial problems.
• Check If You Qualify To Receive Unemployment Benefits – You should check if you are qualified to receive unemployment benefits. Whether you qualify for unemployment benefits or not depends on your situation. If you are lucky enough, you’ll receive a paycheck from the government to help you with some of your expenses. Unemployment benefits vary from one state to another so your location also matters. In Illinois for instance, you can receive up to $1,495 a week for 26 weeks while in Florida you’ll get about $275 for 12 weeks. To qualify for unemployment benefits, you have to provide proof that you didn’t lose your job by your fault because if you got fired because of bad behavior, you won’t be given any benefits. But if you were laid off, then you stand a chance to receive unemployment benefits. It is advised that you apply for unemployment benefits as soon as possible or immediately after you lose your job so that you can start receiving the paycheck in time 
• Create A Budget – Having a budget can help you allocate your available funds with efficiency. With an emergency budget, you remove unnecessary expenses as you focus more on those things that you really need.
• Downsize Long-term – This is another option you can consider if you have long-term financial problems. Downsizing can help you save money and reduce the payments you make on your monthly bills.
• Consider Filing For Bankruptcy – This is usually considered as the last resort when you can no longer repay your debt. Filing for bankruptcy will eliminate any credit or debit card loans you have including other outstanding loans you may have but it also leaves a negative stain on all your credit scores which can last for a long time.

Note that it is very important to save and plan for this situation before it occurs as this will go a long way to help you when it finally occurs. Imbibe the habit of saving for a rainy day as the money you save today can save tomorrow. Also, never let your losses push you off balance, try to stay focused because if you let yourself fall apart, it will be difficult for you to get back on track.

References:

• https://www.investopedia.com/how-to-pay-your-bills-when-you-lose-your-job-4801711
• https://www.consumerfinance.gov/coronavirus/managing-your-finances/what-do-if-you-cant-pay-your-bills/

Last updated on 2022-03-03