Getting out of debt is hard enough under normal circumstances, but if you don't have a job, it can become a bigger source of stress. Your first priority if you're in debt is to keep looking for a job, even if it's something part-time or an occasional gig you can do over the weekends or evenings. Even while you're sending out resumes and hoping for a full-time position, a few hours worked here and there can provide you with some cash until you land your next job.
Step 1
Make a list of every debt you owe to the last penny. Don't forget to include medical bills, store credit cards and any other open accounts besides your credit cards. If you have past-due utility bills, those should be considered a debt as well. Personal improvement website Zen Habits recommends jotting down the minimum payment and the interest rate of each debt as well. Then, add up all the minimum payments to see how much money you need to come up with every month.
Step 2
Negotiate discounts or payment plans with your debtors. Financial website, The Motley Fool, recommends asking your credit card company to lower its interest rate or waive its annual fees. Reach an agreement with utility companies about past-due bills. If you have no money coming in and you can't afford to pay more than a few dollars, tell your debtors exactly that. Some might agree to take a token payment of a dollar or two a month.
Step 3
List at least 20 things you can do to reduce your daily expenses. Examples include canceling your newspaper subscription or unused gym membership, brewing your own coffee at home, using coupons or discount cards when shopping for groceries and turning off lights to reduce your electricity bill. If you can save $10 on each one of them, you'll have extra money to apply towards your debt.
Step 4
Look around the house for things you can sell. Zen Habits recommends thinking out of the box and trying to find ways to earn at least some income. Sell collectibles on eBay and larger items on Craigslist. If you have a lot of furniture or electronics, keep the minimum and sell the rest. Any money put together from these sources can go towards paying off your debt.
Step 5
Find ways to pay for your everyday expenses without charging them to your credit cards. Doing so will only increase your debt. If you don't have an emergency fund, consider applying for public benefits, unemployment or food stamps. This can help you get through your unemployment period without increasing your debt so any money that you earn can be used to pay off debt.
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