How to get out of debt after a layoff

[Learners Quest]

If you find yourself in debt after a layoff, don't despair. There are steps you can take to get out of debt and improve your financial situation.

First, take a close look at your budget and see where you can cut back on expenses. Do you really need that cable TV package? Could you get by with a cheaper cell phone plan? Every little bit you can save will help.

Next, start paying off your debts, starting with the ones with the highest interest rates. Pay as much as you can each month to get rid of the debt quickly.

If you have a 401(k) or other retirement savings, you may be tempted to cash it in to pay off debt. However, this is usually not a good idea, as you will incur taxes and penalties on the withdrawal.

Instead, consider taking out a 401(k) loan. You can borrow up to 50% of the balance of your 401(k) account, and the interest you pay on the loan goes back into your account. This can be a good way to pay off high-interest debt without incurring taxes or penalties.

Finally, if you are struggling to make ends meet, consider contacting a credit counseling service. These agencies can help you develop a debt repayment plan and may be able to negotiate with your creditors to lower your interest rates or waive late fees.

 

[Augusta]

it might be difficult to get out of debt when you are laid off your job but you just have to see the measures you can take to start paying off to avoid any kind of embarrassment from the creditors so if you can you can open up to your family and friends to see how far they can assist you with your repayments.

The most authentic way will be to look for another job as fast as possible and no matter how small it is it is always better to make a little advancement in payment than not to do anything at all.