What to Do with Debt Payments when Losing Your Job

Financial debt can become difficult with losing your job

Life is filled with many unexpected twists and turns that can affect our ability to make debt payments. And, we have the responsibility of figuring out what to do when confronted with the unexpected. A way to counter act the unexpected is to plan for the future.

One of the most significant life events that can affect your finances would be losing a job. Losing a job not only puts a strain on your pocket, it can be mentally exhausting as well. As a result, you no longer have a dependable source of income, which restricts your ability to enjoy life’s pleasures.

A simple solution to this situation would be to find a new job. But finding a job takes time, and if you are in debt, your debt will wait for no one. In the mean time, while you are looking for a new job, here are a few tips on what to do if you are in debt.

Continue to make debt payments on time.

You should at the very least make the minimum payments on your debts. This helps reduce your monthly debt payments which can leave more money for living expenses. Not making payments or paying on time can affect your credit score, which can hinder your ability to find a job.

Prioritize your debts.

This requires thorough consideration. It is important to continue making debt payments on the items that are essential to your day-to-day needs. For example, your rent or mortgage, car payments, water, hydro, and gas.

Reach out to your creditors.

If you are finding it difficult to keep up with your debt payments, you may have the option of talking to your creditors. There is a possibility they can offer a lower interest rate or combine your debts into a single loan with lower interest. Another option you might have is negotiating lower payments.

Get help from a licensed professional.

Even though Licensed Insolvency Trustees handle bankruptcy, they can also offer information on other possible options. They can help with budgeting, consolidating debts, selling off assets, or offering a proposal to your creditors.

We are Licensed Insolvency Trustees with the knowledge and experience in addressing the financial issues mentioned above. Our expertise can address any financial challenges you may face, including managing credit and most importantly finding a way to reduce or eliminate overwhelming debt.

If you need help, contact us by emailing or call us at 416 736 4357 (HELP). You can also book a free consultation with no obligations by filling out the contact form on our home page.

Make an appointment today for a custom-tailored solution specific to your situation. We look forward to assisting you.