Being out of work and in debt is a stressful situation that requires a plan and patience to repair. The first step is to find employment that will allow you to pay your bills and avoid further debt. With the right attitude and proper money management techniques, you can get a job and get out of debt.
Step 1
Talk to your creditors about your situation and let them know that you are out of work. Many creditors will work with consumers who communicate with them. They may lower your monthly payments to allow you to pay a small amount to avoid collections while you get back on your feet. Consider a debt-consolidation loan to help you manage your debt if you have a lot of outstanding payments. Debt-consolidation companies usually offer credit counseling along with their repayment plans.
Step 2
Get a part-time job, which often is easier to get than a full-time position. At the very least a part-time job can help you begin to bring in some income. Keep the part-time job when you land a full-time job and use the extra money from the part-time job to pay off your debts, advise the consultants at Snag-A-Job.
Step 3
Eliminate excess. While you may need your car for work, you may be able to save on gas by consolidating your errands in a single trip. Forgo extravagances such as manicures or eating out until you have your finances in order. Replace those treats with less expensive alternatives to keep up your spirits. Visit friends or pull out the board games for entertainment options that won't add to your debt.
Step 4
Look for extra work online. Use online resources to make money by selling stuff around your house that you don't need. You can make sales online after hours to earn extra money. Use Craigslist to list free ads. Use any money you receive from selling your things to put toward a bill.
Step 5
Write down every dollar you spend to learn how to recognize where you can cut back. You may be surprised if you keep track of all your spending. Many people spend more on energy drinks or designer coffee than they realize.
Step 6
Set a budget that coincides with your income, advises financial consultant Bill Losey at the website Self Growth. Make sure your spending does not exceed your income. Include payments in your budget that will bring down your debts.
Tips and Warnings
- Stick with your plan. While it may take a year or more to get out of debt working part time jobs, it will happen if you stick to your plans.
- Don't hesitate to take a job that may not be your ideal position. Consultants at Pay Scale report that with a good attitude, any job can be bearable. Be enthusiastic and look for ways to have fun. Remind yourself that you are paying down your debt. Keep looking for your ideal job in your spare time. Your positive attitude will reflect in your job-hunting results while helping to maintain your sanity and your happiness.
Things You'll Need
- Part-time jobs
- Online work
- List of spending
- Budget
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