Handling Debt When You’re Out Of Work

Nothing is more stressful than losing your job and watching the bills pile up. It isn’t long before your bank account balance plummets, the collection companies start to call, and you feel like you’re drowning in debt.

Don’t panic. You can keep your head above water and your bank accounts out of the negative. Here’s how.











1. Make job-hunting your full-time job.

reduce-debtGenerating an income is your number one priority and the best solution for your financial woes. It may be difficult to find a job in your area of expertise, and it may be even harder to replace a sizeable income in this economy, but that does not mean you can simply wave a white flag and surrender.

    Take what you can get. Desperate times call for desperate measures. Stop holding out for that management position or dream career. A job flipping burgers, cleaning floors, or raking lawns is better than no job at all. And the money will keep the electricity on and the repo man at bay.

    Go part time. A part-time job is also better than no job. Many people juggle two or more part-time jobs to meet their financial obligations.

    Looking for work is a full-time job. Until you are working a full-time job, you do not have “spare” time. You need to keep handing out resumes, applying to job sites, and combing job boards until you are back on your feet again.

2. Examine your debts

Which debts are a priority? If you have any “secured” debt, meaning that the creditor has the right to repossess an asset for non-payment, you will want to keep those up-to-date. The last thing you need is to have your home go into foreclosure or your car repossessed.

You will also need to ensure that the things you need to survive such as electricity, heat, and food are covered.

Also, consider paying off the items with high interest rates like credit cards. These outstanding balances can turn into massive debts if left unpaid.

3. Contact your creditors

Contact your creditors before your accounts slip into arrears. You may be able to negotiate lower payments, lower interest rates, or deferred payments–any of which will help you stay current on your financial obligations and prevent further stress. If you wait until you have become delinquent, they may be less receptive to your request for help.

4. Apply for Unemployment Benefits

Contact your unemployment office the minute you find yourself out of work. The sooner you get your paper work completed and the wheels in motion, the sooner you will receive your benefits. These funds will definitely help keep food on the table while you conduct your job search.

5. Tighten your belts.

Begin by separating your necessities from the expenses that you can survive without. For instance, you need heat, but you don’t need satellite TV.
Next, devise a budge based on these necessities and stick to it. Eliminate extra expenses until you are back on your feet again and, then, introduce them gradually. You may find that you don’t need some of them after all.
And don’t put extras on credit cards. A mounting credit card debt can be disastrous–growing rapidly due to high interest rates. Snipping your credit cards in half would be the best move.
Unemployment is stressful. Unemployment coupled with debt can feel like an insurmountable burden. So don’t let your debt drag you down to the depths of despair. By sticking to a plan, being proactive, and never losing hope, you can return to financial viability–and restore your satellite TV.

Read more at http://financialhighway.com/handling-debt-youre-work/#tXAYaguMR1VlRDjJ.99

Begin by separating your necessities from the expenses that you can survive without. For instance, you need heat, but you don’t need satellite TV.
Next, devise a budge based on these necessities and stick to it. Eliminate extra expenses until you are back on your feet again and, then, introduce them gradually. You may find that you don’t need some of them after all.
And don’t put extras on credit cards. A mounting credit card debt can be disastrous–growing rapidly due to high interest rates. Snipping your credit cards in half would be the best move.
Unemployment is stressful. Unemployment coupled with debt can feel like an insurmountable burden. So don’t let your debt drag you down to the depths of despair. By sticking to a plan, being proactive, and never losing hope, you can return to financial viability–and restore your satellite TV.

Read more at http://financialhighway.com/handling-debt-youre-work/#tXAYaguMR1VlRDjJ.99

Begin by separating your necessities from the expenses that you can survive without. For instance, you need heat, but you don’t need satellite TV.

Next, devise a budget based on these necessities and stick to it. Eliminate extra expenses until you are back on your feet again and, then, introduce them gradually. You may find that you don’t need some of them after all.

And don’t put extras on credit cards. A mounting credit card debt can be disastrous–growing rapidly due to high interest rates. Snipping your credit cards in half would be the best move.

Unemployment is stressful. Unemployment coupled with debt can feel like an insurmountable burden. So don’t let your debt drag you down to the depths of despair. By sticking to a plan, being proactive, and never losing hope, you can return to financial viability–and restore your satellite TV.

source:  financialhighway.com

5 Financial Tips for Starting Your Marriage Out Right

Marriage is a huge life decision. Your marriage will affect all aspects of your life, including your finances.

If you are planning on getting married, it’s important to start out your life on the best possible footing. This includes starting out on the right financial foot. Before you tie the knot, here are 5 tips that can help you avoid some of the financial pitfalls that can come when you combine finances:

1. Be Honest about Your Finances

Before you get married, you need to have a financial show and tell. Be honest about your debts and where you stand. Your partner should also be forthcoming about his or her finances. Get it all out there on the table so that you can see what your combined finances could look like.

Once it’s out there, you can also get a good idea of where you need to go from there. Seeing the big picture can help you figure out how to improve your finances and make a plan for achieving your shared goals.

2. Determine Your Shared Financial Priorities

Next, you need to make sure that you have some shared financial priorities. What are the things you want to accomplish together? Do you want to buy a home?  Have children? Save for retirement? Use your money to travel the world? Give to charity?

If you start spending, and you have different priorities, one (or both) of you is going to be very unhappy if you are unwilling to compromise. When you aren’t spending money on the things that are important to you, it starts to feel as though you are “wasting” your money — and no one likes that feeling.

Make sure that you come up with shared financial priorities, and that on items that you differ on, you come up with a way to ensure that both partners are able to spend money on what’s most important to each.

3. Plan a Sensibly Priced Honeymoon

My husband and I didn’t have what many would consider a “real” honeymoon. We spent a couple of days in New York City. However, our honeymoon was very affordable. There are some that recommend you choose a honeymoon that you can pay off within a year. I prefer to save up for a honeymoon. Since my husband and I had something of a whirlwind romance, there was no time to save up for a grand vacation. And we had to be back at school a week later anyway.

Don’t plan a honeymoon that you will both regret as you continue to pay for it year after year. The same is true of your wedding. If you know that both of you won’t mind paying for the wedding and honeymoon for the next five years, then go all out. But you have to agree that it’s something you both feel is worth going into debt for, and worth paying all the interest on.

4. Create a Spending Plan that Works for You

Work together to create a spending plan that works for your situation. If you have separate accounts, you need to figure out who will pay what bills. Should you set up a joint account and each of you contribute money to the account to cover shared expenses?

Also, figure out how much you can afford to spend on groceries, entertainment, and other items. Look at your income and your expenses, and note recurring costs like insurance premiums, housing payments, and retirement account contributions.

You will also need to find out about obligations your partner has (and share yours). While debt is an obvious obligation, your spending plan will also need to take into account the possibility of child support and alimony.

5. Be Wary  of Taking on Your Spouse’s Debt

You don’t have to be responsible for your new spouse’s debt. But you have to be careful to keep it separate. Debt incurred before the marriage only becomes your responsibility (in most cases — check your state law) if you are added to the account, or if you co-sign to refinance the debt.

Think long and hard before you take on your spouse’s debt. You might find that it makes more sense to encourage your spouse to carry on with paying down his or her own debts.

source: financialhighway.com

Consumers feared tough budget

The federal government's persistent warnings of tough measures in the run-up to the May budget may have spooked consumers into saving their cash, rather than spending at the shops, retailers say.

Australian Bureau of Statistics figures published on Wednesday showed retail spending dropped by 0.2 per cent in April to a seasonally adjusted $21.2 billion - in defiance of financial market expectations.

The monthly result was a sharp reversal from the 1.1 per cent increase in March.

Australian Retailers Association executive director Russell Zimmerman said it was disappointing because the sector was hoping for a boost after the April Easter holidays and the relaxation of trading hours in some states.

'The monthly decline shows consumers might have had more time up their sleeves in April but sadly no cash in their pockets,' he said in a statement.

Spending was particularly weak in household goods and department stores retailing, while there was a marginal rise increase in food and cafe and restaurant sales.

Australian National Retailers Association chief executive Margy Osmond said consumers had heeded government warning of a tough 2012/13 budget and 'shied away from making major purchases'.

Retailers are now hoping May sales will be better after the central bank cut interest rates this month and the budget turned out not as bad as expected.

'We will again be looking for further cash rate cuts so consumers feel safe enough to shop,' Ms Osmond said.

Financial markets are fully expect a 25 basis point cut in the Reserve Bank of Australia (RBA) cash rate to 3.5 per cent when the central bank board meets next Tuesday.

The retail figures coincided with the release of new construction figures for the March quarter, which highlighted the effects of the two-speed economy.

Construction grew by 5.5 per cent to $48.3 billion in the first three months of the year, and were 15 per cent higher from a year ago.

The strength was largely due to a booming engineering sector, which is benefiting from mining related projects.

Engineering work jumped 13.3 per cent in the quarter and a staggering 35.6 per cent over the year.

TD Securities head of Asia-Pacific research Annette Beacher said the strong engineering result increased the likelihood that next week's national economic growth report would be better than expected.

source: skynews.com.au