How to Cope with Debt When You Lose Your Job

by Briana Marie
0 comment

*Post may contain affiliate links. Full disclosure can be viewed here.

Budget

Even though you have lost your job, you may still have money coming in whether it be through unemployment or other sources. This could also be any payments that you have coming in from sold items or even investments.

When you have worked out how much you have coming in, you can then begin to deduct your living expenses, your payments, your household bills, and anything else of the sort. I recommend prioritizing your income FIRST so that you can properly allocate the income you DO have coming in.

Penelope Jane Smith actually gives a really great tip for prioritizing your income allocation as part of her Financial Freedom Strategy.

You can actually apply for a Financial Freedom Strategy Session HERE if you’re ready for that powerful next step in your financial journey. You can also check out the Financial Freedom Formula FREE DOWNLOAD HERE.

But what Penelope suggests is prioritizing your income in the following order.

  1. Food
  2. Basic utilities
  3. Shelter
  4. Basic transportation

Again, you can learn even more about the best strategies for managing your money by booking a Financial Freedom Strategy Session.

But once you have your income mapped out and have prioritized how you’re going to allocate it, you can then begin to look at which debts you want to tackle first with what’s left over. A good tip is to tackle the debt that has the highest interest rate FIRST as this could save you more money in the long run.

By understanding your financial situation and building out a budget, you can then begin to organize everything. This can really help you to work out where you need to be in order to get back on top.

Ask for Help

When you find yourself in a bad situation, you should never be afraid to ask for help.

Sometimes you really need to count on the people around you, because, at the end of the day, they are your support network.

Sure, asking for help isn’t easy, especially when it comes to asking for money. But you do have to remember however that everyone goes through hard times and that these aren’t going to last forever. And there are many ways you can show your gratitude for those who help support you during these challenging times.

And when asking for help, it doesn’t always need to be about asking for money specifically. You can ask for gently used clothing or household items. You can ask for assistance with child care. You can turn to your local government for assistance with healthcare and food. You can even simply ask for your network to share your product or service with their network to help you generate additional income.

There are literally so many ways you can lean on others for assistance!

When you begin to understand this, you will then find that everything else falls into place and that you are able to manage your own situation much more efficiently.

If you are afraid to ask for help, don’t be tempted to apply for a credit card or take out a loan instead as this can make your situation even worse.

Get Creative

Lastly, don’t be afraid to get creative when it comes to finding new sources of income. As a matter of fact, you’re in the perfect place to find some ideas right here on Major League Mommy!

You can check out these side hustle ideas to kickstart the ideation. You should also check out these various ways to make money from home as well as these ideas to save more money!

Wrapping Up

Losing your job can be very stressful, especially when you have debt hanging over your head. But the good news is, there are some steps you can take to ensure your basic needs are being met as you work towards chopping down those liabilities.

Start with making a list of all your sources of income and how much you’re bringing in each month. Use the method above to best allocate your current income. From there, build out your budget. Look at where you can find additional help during this time, get creative with generating new sources of income, and work on paying off your debt with the highest interest rate first.

Author

  • Briana Marie

    Briana Marie is a mental health and financial literacy advocate, and founder of Major League Mommy. In her spare time, Briana enjoys yoga, travel, and spending time with her Husband and two daughters.

You may also like

Leave a Comment

error: Content is protected !!