Beating Broke

Personal Finance from the Broke Perspective

5 Ways to Handle Debt When Laid Off

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Getting laid off can be a shock for anyone. Sometimes they come as a surprise and on some occasions layoffs are expected. When you’re presented with a layoff, you may feel that your life is crumbling before your eyes. With no job and debt, how will you pay your bills?

The thought of having no job and debt can keep even the most financially stable person up at night. It’s every ones worst nightmare. So if you’re not going into unemployment with a large amount of savings then how do you handle debt while laid off? There’s no simple answer to this question and every situation is unique but here are five tips to help you handle debt when laid off from your job.

Know what funds you have available

Make a list of all of the monetary assets that you have. You should know exactly the amount of money you have in your checking and savings account. As for credit cards, know your available credit. If you have any investments or retirement accounts, you should know the cash value for those as well. Desperate times call for desperate measures and you will probably need these funds in order to get by.

Prioritize your expenses

You always want to pay secured debt first. Secured debt means that the asset can be claimed by the lender if the borrower falls short of payments. Examples of secured debt are your house and car. Your mortgage, utilities and food expenses should be the first expenses that you pay before anything else.

It may get frustrating getting creditor calls from your credit card companies but credit bills are the last thing that you pay in these kind of situation. So don’t be pressured to pay the bill unless you can afford it. Also, don’t allow creditors to harass you. Know your rights and find out what laws in your area protect you from creditor harassment.

5 ways to handle debt when laid offSeverance package

When laid off ask your employer about a severance package. Severance package are pay and benefits given to an employee when they have been laid off. The amount given is based on the length of employment. It can include a payment for unused sick and vacation days. Severance pay should be rationed towards your bills until you find new employment.

Contact creditors

Call each creditor and make them aware of your situation. Let them know that you have been laid off. Most credit card companies will be willing to work with you due to the simple fact that they want their money. In most cases there is a good chance that you will be able to negotiate a payment plan. Also, ask your bank about a hardship plan or forbearance program. These programs can involve lowering minimum payment, temporarily lowering the interest rate, or the cancellation of late fees and penalties.

Get a job

It’s important to get a job as soon as possible. When you’ve been laid off and you have debt, you are not in a position to be choosy about where you work. It’s important to get a job, any job. Of course you would like to do something related to your experience and your training but you must face the fact that you may not got the job you desire. Finding a job takes time and patience, so if you know of any places that are hiring immediately, just take it.

If you can’t find a job, then get creative and find ways to make money. Sale your car or rent out a room in your house. If you have a skill start contracting out work as a way to supplement income. Start a business from home using resources that you already have.

In conclusion, unemployment doesn’t have to ruin your finances. Although, being laid off from a job can be one of the hardest times of your life, good money management skills and determination can help you manage your debt effectively.

Quick Tips for More Spending Money

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Tired of living paycheck to paycheck? As hard as it is to say, you may have to get in line; unfortunately, it seems the numbers are growing more than ever of those struggling to make ends meet. From college aged to the elderly, living paycheck to paycheck has become a new and highly stressful way of life.

It isn’t as easy as we would like it to be to try and get out of this form of living; in fact, for many they may have been living this way for so long it has become a natural routine. One of the easiest ways to slowly start to get out of this mundane and disheartening routine is to figure out a way to earn an extra income, an extra cash flow if you will. Whether it’s from using a skill you already have, giving guitar lessons perhaps, taking up an extra job, or even getting rid (selling) unwanted and unused items, there is a good amount of profit available if you are willing to put the extra work in. No matter how small or mundane some of these ideas might sound, you would be surprised of how lucrative they can actually be. When you are tired of living in your rut you become eager to find a way out; realizing the amount of possibilities that are available to you and acting on the opportunities presented will surely get you a step ahead in regards to your financial goals and future.

If you have a skill of any kind, sports related, creative writing, computers, electronics, music, you name it, there are people out there willing to pay you for your services. Have a bunch of junk around the house or cluttering up your garage you’re simply tired of looking at? Then perhaps you should consider having a yard sale or even start selling some items online to make a sufficient and substantial profit. There are also numerous sites looking for specific items, for instance sites with a focus on jewelry, that would be willing to pay a pretty penny for your unwanted gems or gold; sell your jewelry for cash, you won’t be disappointed!  If you have a bunch of items you can’t seem to sell online try having an online sale and you’ll be sure to get a good amount of cash to put away for a rainy day or to help pay the bills. Then there is always the thought of taking up a second job, this might not be plausible or appealing for many but it will get you out of the hole and away from living paycheck to paycheck.

Whichever method works best for you and your circumstance, you must keep in mind that there is always a way to get ahead in this world and out of the living from paycheck to paycheck routine. No matter how much extra work and time it may take, and be aware that it will take a decent amount of extra time and effort, there is light at the end of the tunnel if you look for it.

Best Family Finances of Shop-O-Holic Moms

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About 5% of the American population suffers from compulsive shopping. And, consider yourself a member of this club if you cannot stop making massive purchases. Having a loving family means you should prepare yourself for many fun filled moments as well as a number of surprises. Blame your lack of self-control when some of you just cannot resist the temptation to hit the stores and start buying things.

Even shopaholic moms feel stressed when they think about what products to buy every time they go shopping. When it comes to finding the best ‘formula’ for family finances, all you have to do is get started now.

Saving money and managing family finances is not a difficult thing to do when you are prepared. If you think you are the only one who wants to run and hide with the thoughts of slashing your spending, it is time you think again. You are a shopper and love the thrill of hunting for new things, but the only way to stay stress free is setting a goal for your family finances.

Time to become a Smart Shopper

Scrutinize Your Grocery Bills

Smart shopaholic moms stick to a budget and look out for the best deals. So you can start with your grocery bill. You can easily cut down your spending by taking out time for planning your menu weekly. Write down the list of ingredients you need for the week and make sure you don’t forget the weekly grocery sales. Also, keep your cookbooks handy that will help you plan a delicious menu for the coming week.

Use Credit Cards to Your Advantage

Many have settled their credit card debts easily, and even you can handle your family finances in a better way by becoming a ‘credit-savvy’ shopaholic mom. It only takes a little as 15 to 20 minutes to get a quick update about your financial standings. Keep a record of your monthly spending and see where exactly where you are using your credit card. There are chances that you come across a number of areas where you can make a change and help your family finances get better. Just make sure you only use your credit card when you cannot do without it.

Change Your Shopping Behavior

If you love to buy everything brand new, there is no question that your family finances will be in poor shape. Often overlooked, changing your shopping behavior is the magic formula to bring down your spending. Try to buy in bulk, and this should start with your grocery shopping. This is usually the largest category where you spend money and there are so many different ways you can whittle it down.

When you need to buy a product, go for generic and store brands instead of big brands. Not only can you find products at cheaper prices, but you can also prevent your family budget from going out. You can find quality furniture, DVDs, home décor items, kitchen appliances and similar accessories at best prices at secondhand stores and online bargains.

You can use a credit card to make purchases, but many stores offer lucrative discounts if you pay cash.

Go For End-Of-Season Sales

If you really want to save money, you can buy clothes and other accessories for the next year during end-of-season sales. You probably won’t notice, but your pockets will surely feel a lot better when you buy at the right price.

Choose the Right Entertainment Options When Going Out For Shopping

And finally, make sure you skip the highly priced entertainment options and go for ones that suit your budget. Even if you love sipping fancy juices and coffees when out shopping, you need to change your habit. You can make coffee at home and fill your travel mug. Your favorite beverage will be ready to go with you and there is no need to make painful adjustments to your monthly budget.

Not many of you realize this, but the extra cost of buying food and drinks in a mall can really add up on your spending. By breaking your fancy coffee drinking habits, you can save lots of money for better family finances.

In addition to ideas mentioned above, you can use your own creative thinking to cut down extra costs and watch your savings grow.