Like many Americans now, you may have lost your job and have no idea when you’re going to find another one. In the meantime, the bills are piling up. Having a clear-cut plan will help keep your house in order until you have a new source of income coming in to put toward debt relief.
What to Do About Debt When You’ve Lost Your Job
1. Apply for Unemployment
In Hawaii, you’re most likely eligible for unemployment benefits if you lost your job through no fault of your own. You must have earned wages for insured work in two out of the last five calendar quarters preceding the effective application date. To fill out the forms, you’ll need a Social Security number, driver’s license number, employee information form, and pay stubs.
If you’re deemed eligible, you’ll receive around half of your previous pay each week for the first few months and a lowered amount after that. You’ll also be required to check in with an unemployment office to show you’re actively looking for work.
2. Create a Survivor Budget
Until you can land new employment, you’ll be living off savings and any benefits you can acquire, which is likely much less than what you’re accustomed to. To meet this new budgetary limit, make a list of guaranteed money coming in and bills due.
Eliminate all unnecessary payments like subscription services and cable. When you have your finances trimmed down to the bare necessities, determine how much you can allot to pay for essentials like food and toiletries each week.
3. Prioritize & Negotiate Debt
If your survival budget looks constrained or is still in the red, you’ll have to make some further decisions to secure debt relief. For instance, while you may not be able to forgo paying mortgage or rent payments, you might surrender a vehicle and take the bus instead.
It may be possible to negotiate with your creditors for a lower monthly payment. Mortgage lenders, in particular, are often open to loan modifications. Your changed circumstances might make other loans eligible for deferred loan payments or forbearance. You can also enroll in a debt management plan to reduce the total monthly payments you must pay on your debt.
If you want to unload the burden of debt during these uncertain times, turn to Greg Dunn, Bankruptcy and Debt Relief Attorney in Honolulu, HI. For over 25 years, this bankruptcy attorney has provided reliable legal representation to clients seeking debt relief, home foreclosures, wage garnishments, and tax relief. Schedule a consultation today by calling (808) 524-4529, and visit his website to learn more about his debt settlement program and bankruptcy assistance.