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Unemployment has a habit of bringing adverse consequences and most of them are related to financial inadequacy. To manage the obligations, you take loans for unemployed but the fact is that after taking the loan you have to repay it. It again demands money.
Would you take another loan to pay off the previous one? Obviously no. You need to make some arrangement to ensure that the repayment is on time and does not affect your credit performance. Missing even a single repayment can create an imbalance in your life. Once you get into such ruts, it can be extremely difficult to come back.
Plan things and think of ways that can help you pay off your loan on time. Given below are some suggestions that may prove helpful to you.
savings are the best protector
Savings is like a treasure which makes your short term and long term plans come true. It assures that you have money in case of an emergency. If you are facing difficulty in repaying the installment of any month, then use the saved amount. However, there are certain rules that you should follow while withdrawing money from savings. There is no point in spending all your hard earned money in paying the instalments.
Rules for using the saved amount
• Withdraw money only when you have no other option to rely on.
• Debit only the required amount to avoid regrets later.
• If you get some extra money, put the same amount back in savings.
additional source of income
Many people take on extra work or part-time jobs to earn extra income. If you are doing the same then perhaps this is the best time to put that income to good use. This can assist with the repayment of your short term loans for the unemployed till you get the next job. However, keep in mind to maintain a balance between income and expenditure. You cannot use the entire amount to pay the instalments. If you’re doing this, make sure there are some arrangements in place to handle basic living expenses.
friends and family
Some people are always with you no matter what the situation. Ask them to help you out and don’t forget to mention that this is for a short period of time and you will return the money soon. They have their own financial concerns and you have to respect that.
unemployment benefits
The financial assistance you receive in the form of unemployment benefits can be used to make repayments. These benefits are regular and you get the money on a fixed date, which is an ideal thing to repay the loan as you have to pay them on a fixed date of the month.
consolidate your debts
It is not necessary that the loan for unemployed is the only liability that you manage. There can be many more things in your account as outstanding loan. In that case, you can consolidate all your loans into one installment and at a fixed rate. You are paying multiple instalments, a different rates keep fluctuating and this affects your finances a lot. This makes the monthly repayments small and affordable and paying them is not a burden.
do not spend recklessly
Be cautious and use the available funds wisely. It’s okay not to eat at restaurants. Cook at your home till the situation comes under control. Spend on needs but not on wants.
There are many other ways to manage loan repayments for people with bad credit and who are unemployed. Explore them and make a list of the most promising methods that can prove useful in managing your finances.
Unemployment and debt are both very fragile situations and offer no second chances. Not only this, both have the potential to greatly affect your financial life. Patience, wise judgement, rational mind and smart choices are the basic elements which act as the deciding factors in your money related matters. Carry them all along and there will be no mistakes and no regrets to follow you through restless nights. No fear and no embarrassment of failure to repay the loan. Pay special attention to your credit performance as defaulting on loans can put your future in big trouble. Timely repayment improves your credit score and then comes the luxury of a safe and secure tomorrow.
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