Losing your job is one of the most stressful situation that a person can go through. Whether you’re the victim of “company restructuring”, outsourcing, or simply arrived to work to discover that you weren’t needed anymore, this is an incredibly difficult thing to have to go through. One of the first things that you have to do after losing your job, however, is figure out a new budget
. Until you find something new, you’ll be living on a combination of your savings, unemployment insurance, and whatever odd jobs you can pick up between now and then. That most likely means that you’ll be on a reduced budget for a while, and you’re going to have to cut back on your spending.If you’re like most Americans, however, there isn’t a whole lot that you can cut back on. While you can probably cut your cable TV or reduce the data plan on your cell phone, you have to have things such as internet and telephone in order to apply for jobs. Selling your home or car can be a drastic step, and one that probably doesn’t make a lot of sense when you’re only expecting to be out of work for a few months. That’s why you need to look at how much you’re spending on your debt
.If you could reduce the amount that you’re spending on your credit cards and other debts by half or more, how much would that help you? Would it enable you to live on your limited income for a while longer, giving you the time to find the job that is just right for you? If so, you want to look at debt consolidation
. These loans reduce the amount that you spend on debt repayment by paying off all of your existing debts, then replacing them with a single loan at a lower interest rate and better payment terms. By doing this, debt consolidation loans can offer their borrowers payments that are often less than half of what they are currently paying.
As an added bonus, each loan gives you access to a debt counselor who can work with you to form a new budget. You’ll benefit from talking to a financial professional who has helped hundreds of people in similar situations. You’ll walk away with few bills and a spending plan that will get your through the next several months until you find a new job.