The Silver Lining: Managing Money When Out of Work

The Silver Lining: Managing Money When Out of Work

Being out of work may not sound like there are any silver linings. However, there are some ways to manage money that may make managing finances without a job easier. Making the most out of your money while unemployed is key to financial survival. There are also several legal options for dealing with debt that may take away financial strain. Reach out to a Chattanooga bankruptcy lawyer if you have any questions about bankruptcy.

How to Make the Most of Your Money

Several budgeting strategies can help you make the most of your money during unemployment. You do not have to settle for less and let your money slowly dwindle away. Take action by listing out all your monthly and other upcoming expenses. Subtract these from your savings and any other financial assets you have left.

Use this information to guide you on what expenses to cut and where to put your remaining money. Depending on the situation, you may benefit from putting more money into savings until you find another source of income. Others may have enough financial assets to put more money into debt.

Figuring out a timeline can help you track how much money you will have left after a certain period of time. This can help you find out when you could run out of money to afford your living expenses. Having a timeline will tell you when you may need to find a source of income to keep up with the costs of living.

Use this information to start deciding where to cut expenses and other ways to save money on life necessities. This may look like more affordable groceries, cutting costs, or holding off on debt. Contacting creditors to explain your financial situation may prevent late fees and other consequences.

Debt Relief and Bankruptcy Options

There are several debt relief options available that may help you manage debt until you find a new job. These can come in the form of debt relief companies or debt settlement companies. They offer lower interest rates and potentially lower monthly payments for your debt.

The dilemma is that debt relief companies cannot always guarantee that all your creditors will agree to the settlement offered to them. Creditors are not obligated to do so and may even charge late fees for missed payments, even if this is part of the settlement plan. If this does not work, then bankruptcy can be another option.

What bankruptcy can do is discharge certain debts like unsecured debt. However, bankruptcy may not always erase secured debts. Bankruptcy can come with a lower credit score but may also give you more time to pay off your debt through debt erasure or a more affordable payment plan.

Call Tom Bible Law Today

You may not have to face financial problems from unemployment forever. Feel free to call us at Tom Bible Law today at (423) 424-3116 for a consultation about what options you may have after being unemployed. Our experienced team of Tennessee bankruptcy attorneys might be able to help you escape your financial situation through bankruptcy. We can be found throughout the Tennessee cities of Chattanooga, Kingsport, and Tullahoma.