Due to global economy crisis, millions upon millions of Americans are financially trapped. They are struggling hard with long term joblessness and personal debts. If you are one of the victims, what should you do? As an unemployed with zero income, I believe you must be fearful and anxious. It is indeed stressful to handle collection calls from creditors. Hence, I would like to share with you some of the practical ways to overcome this problem.

#1 Get the total amount of your credit card debt

If the amount is not too big, you are encouraged to look for a part time job. Generate some income to pay the debt. It is good enough if your part time income is able to cover the minimum amount of your monthly payment. During your unemployment, you may not need a car as it will increase your financial burden. Hence, you are advised to sell off the car to have more cash on hand.

#2 Check your saving account

You need to find out whether you have fund or savings to pay off your outstanding balances. If you have saved some money before this, you can use it to pay your debt first. If possible, you are advised not to miss your monthly payment as it may affect your credit score. The interest rate of credit card is always much higher than the interest rate given to fixed deposit. Hence, you are advised to withdraw your saving and pay off your debt first.

#3 Raise fund on your own

If you don’t have any saving or if you have other more important commitment, you are advised to raise fund on your own. You can try to borrow from your family members, friends or someone you know. Get a friendly loan with zero or very low interest. After you have managed to get a job, you can then pay back the loan. It is always more important to get rid of credit card debt first

#4 Look for personal loan

If there is no friendly loan available, you still can have other alternatives. You are recommended to look for personal loan offered by the financial institutions. An ideal loan you should obtain is the debt consolidation loan. Consolidate all your credit card debts and lump them into one single loan. Pay off all your outstanding balances and focus on one new loan. If your credit rating is good, even you are employed, you stand a high chance to obtain the loan.

#5 Consider debt settlement

If debt consolidation loan doesn’t suit your financial needs, you can then consider settling your debt. Contact your credit card providers directly and request for debt reduction. It is not difficult to negotiate with your creditors. You may request to reduce your total debt or to reduce the interest rate. At the same time, you can bargain with them to waive the late charges and annual fee. For more credit card debt settlement tips – click here.

Being an unemployed is unfortunate, however, you need to have positive attitude in facing all the challenges. You need to reset your mind so that you can be more optimistic in handling your debt issues.