How to Avoid Credit Card Debts When You are Unempoyed

Losing a job is an out-and-out painful condition and when it is coupled with your credit card debts, it is unendurable. Having debts is like you are falling in quicksand and eventually you begin to take wrong decisions. The frustration of getting rid of debts causes you to devour your savings and emergency cushion and max out your credit card limit.

During unemployment, it becomes all but impossible to rely on your savings for your regular expenses. It is better if you let that money intact for rainy days. Having consumed the whole limit of your card, you take loans for unemployment in the UK to meet your needs, but again you find yourself stuck deeper in the debt. Outstanding bills lingering on your report abate your score as well charge late penalty fees and high interest, which results in taking a rollover loan. During unemployment, handling multiple debts is undoubtedly excruciating.

Taking an unemployment loan is a much better option than eating up the whole balance of your credit card. Here is how you can keep credit card debts at bay when you are out of work.

Buy only what you can afford

You can avoid credit card bills if you buy only what you can afford. If you cannot buy with cash, you cannot afford it. Keep cash with you all the time if you go on shopping and make purchases. Lock your credit card inside your cupboard. Neither will you have it, nor will you be tempted to use it.

Talk to your credit card company

Instead of flinching from paying your bills on time, you should talk to your lender and put forth your situation transparently. Your lender will try to be flexible. They may allow you to pay back partly what you owe or they may extend your due date. Clear communication brings a practical solution.

Tighten your belt

Hark back to your financial expenditure list of last three months; you will find discretionary expenses that you can whittle down unless you land a new job. Try to cut down on exorbitant entertainment, dining out, night outs, online subscriptions, and the like. If you find difficulty meeting all of your regular expenses, you should find out a new temporary job unless you get a full-time employment.

Avoid unnecessary balance transfers

Transferring balances from one card to another is not bad as long as you want to pay bills at lower interest rates. If you transfer in order to avoid due dates, you will end up with higher debt because balance transfer fees are added in that vary from 3% to 5%.

Be cautious of quick-fix solutions

With a tight budget, borrowers often get tempted to accept any quick-fix solutions. You will get several opportunities to grab immediate funding offers like payday loans and cash loans. Such loans are more expensive than very bad credit loans no guarantor no broker. Payday loans are not bad as long as you are certain that you will pay back whole of the debt within two-week period. Unemployment loans come with longer term so they do not cause the burden as payday loans do.  

To avoid being trapped by credit card debts, you need to be cautious enough to manage your finances. You can get unemployed loans on easier terms and conditions. If your credit history is not bad, you can also negotiate for lower interest rates.

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