“I had already been in debt when I lost my job. I got little money left because the large portion of my savings was draining in debt repayments. Eventually, I hit rock bottom when I turned to payday loans. I was getting stuck in debt deeper and deeper. I took out a debt one after another, and then I reached a point where I did not want to live. I wanted to die. My all wages were going out to pay off the loans. I did not want to be here. I did not want to get into this mess.”

You may also have the same feelings. You might have reached a point where you have no spirit left to live any more. Emergencies catch you by surprise. No matter whether your employer has made you redundant or you had to go the job for your reasons. Whatever the situation, you find yourself in, you rely on financial support from loan companies.

As an unemployed, you can apply for unemployed loans with no guarantor despite your bad credit history, but they are also challenging to manage when you do not have enough funds to pay off. Much as these loans come with flexible terms, does not mean that they are easy to handle.

If you continue to make default, the pressure of loans will mount up throwing you into an eternal circle of debt. If you have taken out an unemployed loan and already managing other obligations, follow these tips to be one-step ahead of repayments.

Make A List Of Debts

You may take a long time to land a new job, but your debts cannot wait until then. Take a paper and pen and make a list of all your debts. This will give you an idea of how much you have owed and how much money you have to pay off.

Losing a job can tip you over – you cannot manage your debt the same way as you had been handling before being laid off. Once you have made the list of your debts, the next step is to divide them into two categories – priority debts and non-priority debts.

The former includes your mortgage instalment, utility expenses, rent etc. that may have you thrown out of your house and electricity and gas supply cut off. The latter includes credit card bills that would not have negative repercussions.

Create A Practical Budget

Having lost your full-time job, you will rely on secondary income and savings. Of course, you cannot meet all of your expenses, so you have to make do. With a reasonable budget, you will have a clear idea of what is coming in and what is going out.

After losing your job, you have to change your spending habits. Try to cut down on non-essential expenses, magazine subscriptions, gym fees etc. Be ruthless as much as possible. Do not ignore small non-essential costs such as newspapers, takeaway, as they can add up to a significant amount.

Negotiate With Your Lenders

Chances are your financial condition goes worse after you lose your job. You will probably face difficulty meeting your obligations. 1st Contact to your lenders and explain your financial situation to them to find out if they offer you an alternative to getting rid of debts at a reduced interest rate. However, not all lenders will agree to accept payments at reduced interest rates. Even if lenders do not approve of receiving the repayment at a reduced interest rate, they may suggest you some other options.

During unemployment, handling debt is arduous but not impossible. You should create a budget, whittle down non-essential expenses and give priority to your liability.