As financial troubles continue to hit many consumers there are still numerous unemployed individuals who have not only faced long-term unemployment but as data has shown the unemployment rate rose for the month of June, there are concerns by many of these individuals as to how they will make ends meet and stay afloat until they can find a job. Yet, there are some unemployed men and women who have been using different repayment methods and programs as a way to help them handle their debt so that while they are looking for work or if their situation has become quite problematic they can cut costs as much as possible.
Obviously, there are consumers who are facing debts related to their mortgage, but options like modifications or mortgage payment assistance programs will differ than other debt repayment plans that unemployed workers may be able to use. When it comes to credit cards or personal loans, the method that financial debt relief may come through will obviously be different than programs like home modifications, but consumers need to take action by talking with their creditors, explaining the situation, and looking for options that may currently be available for their specific predicament.
An example, some consumers have been in a position where they were able to talk with their credit card lenders and received financial hardship assistance, which may come through forbearance options, lower payments, or even a reduction in their interest rate but consumers need to be aware that this will probably only be likely if financial distress can be shown and a customer has had a phenomenal history of on-time payments.
Consumers who have missed payments, fallen into delinquency, or may simply have a low credit score may not stand to benefit as much from the help that is available due to the fact that some creditors may feel that their situation might not warrant this particular type of assistance since their payment history and responsibility has not been optimal. However, consumers have also opted to talk with credit counselors as a way to find solutions for their problems as simply talking to a creditor may not be enough for certain men and women who are struggling with unemployment and debt.
Options like debt management, which can be used by certain consumers, will essentially negotiate a payment agreement between a creditor and the consumer which will lower their monthly payment amount, but this may require that consumers close out certain accounts like their credit cards and it may cause a slight decrease in their credit score. However, for consumers who are unemployed this is one of the better options, when compared to debt relief programs like a debt settlement plan, as it will do less damage to a consumer’s score if this particular route is necessary.
Consumers must remember that they are going to have to review their particular financial position, estimate how long they may face unemployment, and explore multiple options like simply cutting back on spending, budgeting, or the debt repayment assistance plans if their unemployment may be long-term. Since no consumer’s situation will be exactly like another’s, the debt relief assistance plan that is used will be an individual decision, but there are options that may be available from creditors, credit counseling agencies, or solutions through simple budgeting and reductions in spending may help these unemployed men and women stay afloat a little longer while they are still looking for work.