Losing a job is, for many of us, a delicate situation to manage. Faced with this financial loss, we often have the same constraints: how to go through this period while paying off its debts? Between daily expenses, loans and other bad credits or bills to pay, it is not always easy to adjust your budget when you are unemployed.

Discover some axes of reflection to have to manage effectively its budget.

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Define your financial situation to better manage the emergency

When you are unemployed, the first step is to establish the balance between the usable cash inflows and the debts that must be repaid. The goal is to know, with greater precision, the current financial situation to better identify future deadlines. It would be a pity to be alarmed if the balance is positive. This would only add extra stress to your job search.

In the case where the balance is negative, you need to determine the viable time frame you have. This will give you a good idea of ​​the first actions to focus on. If, during the loss of your job, your financial situation is already in the red, you must check the emergency solutions available to you, as well as the level of toxicity that may result. Indeed, if your debt ratio is at its maximum, the contraction of a new loan may not be the most suitable solution. Just as the overuse of your credit card is not necessarily the most profitable solution for your creditworthiness.

Check your current situation to make the right choices. A sound financial management is the key to you through this difficult period.

Define debts to prioritize

Once you have a better view of your financial situation in the short and medium term, you need to identify the different expenses to set priorities. Always start by paying claims that keep the most important services active. Thus, the bills of water, electricity, or the rent and your insurance are to be preferred. Auto insurance or phone bills can also be a must if they are necessary for your job search.

Then comes the payment of debts such as the repayment of loans contracted or the zerotage of a credit card. Always pay the minimum required by your contracts so you do not end up with late penalties that could be difficult to repay if your situation continues to drag on.

Finally come the daily expenses. Plan a budget in advance so you do not spend more than you expected. This should allow you to keep your account in good condition, while avoiding the appearance of new debts.

Communicating with creditors

If, despite all these efforts, you still have trouble paying your debts, it is always possible to contact your creditors. In some cases, those companies to which you owe money can offer you a lower interest rate. They also have the option of consolidating your debts into a single loan to reduce monthly payments. Other organizations may also accept payment facilities during the entire period of unemployment, which can help you through this bad time.

Contacting these different creditors does not cost you anything and can help you regulate your monthly budget.