Debt consolidation when unemployed – Is it a good idea?

Considering the pain the debt gives you, along with unemployment, it is a good idea to repay your lenders as soon as possible. Actually, the main issue here comes in the form of unemployment. If we can make it work, i.e. tackle unemployment smartly to manage debt consolidation, then we need not be appalled.

But yes, we need to be alert about debt consolidation methods when going through something such as unemployment. It’s seriously troublesome to think of the next employment and debt simultaneously. However, we must employ some good thoughts here. We want our debt to be repaid at the earliest. Otherwise, problems might follow, and some of them might get to be a little too serious. 

What If I Cannot Consolidate My Debt While Being Unemployed?

Well, you have just read that there will be complications. A few in them can go rough on you. There might be further financial complexities. You might again get into legal trouble. Here are a few problems if you cannot consolidate your debt:

• Increased Interest: Not paying debt can result in interest rate growth, making the loans even more expensive to repay. 
• Loan Defaulter: You can default on a loan, which includes financial penalty charges.
• Extremely Poor Credit Issues: The same thing happens with credit cards (in case you use one). Your credit score will be extremely poor. Your credit card issuer might freeze the card until you do something to improve the score.
• Foreclosure: You might have a larger debt, such as a mortgage or a car loan, with an asset as collateral. Naturally, your lender will possess the asset until you repay the debt in full. 
• Bankruptcy: You might get into a serious problem of bankruptcy. Yes, this is relevant to being unemployed at the moment because you do not have a stream of income flowing in. 
• CCJ: County Court Judgement or CCJ is a legal problem that your lenders can charge against you in the local court. It has its regulations, which you have to abide by in terms of repayment. 

All these troubles aren’t mandatory, though. It’s time you take back control and repay those debts as soon as possible. We at cashloans2go.co.uk, promise to offer you a helping hand. Read the next point to learn and form your contingency plan against debt management while unemployed. 

Debt Management Tactics for the Unemployed 

As of 2021, about 476,000 people between 18-24 years old have been found unemployed. They suffered unemployment in the first quarter of the year.

Although these people are young, many older or even elderly individuals suffer debt problems with unemployment. While it is truly a pressing situation for any, we might be able to fix it with a few strategic measures. Here they are:

1. Talk to Your Credit Card Provider 

If you are suffering a credit card debt, you need to know that there is something called assisted program. Also known as a Financial Hardship Program, it is a scheme observed by leading credit card issuers when the cardholder faces severe financial complications.

Write down your condition and clearly describe the economic struggle you are facing. Your credit card issuer will review the details, verify your statement, and may deem you eligible for a financial hardship program. In this service, you will get reduced APRs, minimum payments, etc. However, you may not be able to use your credit card while this term continues. 

• Get a Credit Counselling Service 

Is it too difficult to understand? Yes, credit card norms can be complicated because they bring in complex financial rules. These rules won’t make sense for a busy professional or an entrepreneur in a fortnight. That means you have to educate yourself in using a credit card.

Credit card counsellors are professionals fit for this kind of assistance. They might negotiate how to improve your credit score, consolidate credit card debts effectively, reduce credit card bills, and many more. They will make you an expert in credit card utilization and management. 

• Consider a Debt Consolidation Loan

You’ll need super-strong assistance if there is credit card debt and other debts. Thanks to private lender loans like ours, you might solve the issue.

Can someone get debt consolidation loans for the unemployed? Is it even possible? We say ‘yes’ to that. As a matter of fact, you can take out this loan even if you resume your work a few days later. Let us explain. 

• A debt consolidation loan is not a secured loan option. You don’t need to think of collateral. 
• If you offer a clear statement of when and how you are repaying us, we will go ahead and offer you a loan, irrespective of your present income. You can repay us using the income of your next or upcoming job. 
• We will go beyond a bad credit score for this loan if you are transparent with repayment methods.
• With these sorts of loans, we do accept alternative income. Even if you do not have a day job, you can use other modes of income such as freelance or part-time earning. 

A debt consolidation loan takes care of all the previous loans and gives you a singular loan. Naturally, you get a single interest rate and repayment term, which is less confusing and more comfortable to repay. Plus, a singular repayment term might save some money. 

• Start Earning More through Alternative Measures 

Living costs are rising. Having debt can add up to the cost and can make life a little uncomfortable for you. But, with bright ideas, you can change this situation and turn it in your favour.

If you don’t get a job immediately, try other kinds of work, such as part-time or freelance work. There are non-profit organizations in the UK too, which provide contractual job options. You may also teach what you know the best online and earn money.

To Conclude

We are a direct lender organization, and we are at your service whenever you need us – either for consolidating debts or for, managing unemployment or both. Just let us know how much money you need. We’ll be helping you like you never expected.