“Dear Steve,
I just got fired from my job and now have no source of income to pay my bills which include over $13,000.00 in credit card debts. I’ve always paid my bills on time and am current with all my credit card payments. I have a very good credit score. I have filed for unemployment but it hasn’t been approved yet. But even if/when it is approved it will not be sufficient to pay my mortgage, utilities and credit card debts. Can you tell me the best course of action to take?
Marie”
Dear Marie,
If you JUST got fires then I want you to take a few days off and get the pity party out of the way. We all feel like crap when bad things happen to us so getting that out of the way quickly and then committing yourself to tackling the problem will really help.
it does not sound like you are sitting on a massive emergency fund or savings account so my advice assumes that.
First, you absolutely must prioritize your obligations. At this point with no income and possibly little savings your credit card bills come dead last. You need to first pay your essentials, mortgage, utilities, food, etc.
If you don’t pay your credit card bills after a few weeks they will begin to start to call you. but the reality is that until you can find a new job and replace the income you simply can’t make a payment or a promise to pay with money you don’t have. Unemployment is not to pay your credit card bills, it’s to keep you going on a reduced level.
Your credit will take a hit with this plan. It can be rebuilt easily enough. What can’t be fixed is you getting foreclosed on or the utilities shutoff because you sent your money to the credit card company instead.
Now, start making a job of getting a job. Get up and dressed and ready to start hunting for a job. Apply at all the temp agencies around town. Take any job you can get. Activity breeds opportunity. Keep yourself moving. When I was out of work I took some of the worst temp jobs in history. I did what I had to do. It was hard to go from managing 45 employees to getting some guy coffee. It sucked, I did it.
Every resume you send out is one step closer to a new opportunity. There is a job out there waiting for you, you just have to work hard to find it. Remember, even at 10% unemployment, 90% of people are employed. There is hope.
So what do you think, does this approach make sense?
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
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Steve,
Thank you for your kindness and your advice. I will
try to remember to let you know how things work out for me
Have a Happy New Year.
Marie