When you take out a loan you sign a contract that states a commitment to pay back the money that you borrowed each month till the loan is fully repaid. And in most months you can do your payments without any trouble but sometimes you get some rough patches that can completely ruin your plans of paying back your debt. One of the worst things that could happen is you can loose your job and without that monthly income it will be very hard to pay that money that your owe. So here are some helpful tips that you can use if you need to pay back all your debt but you have lost your job:

  • Apply for social security – The first thing you need to do is to apply for unemployment compensation from your local government. If you have honestly paid all your taxes then you should have a reasonably priced unemployment compensation that you can use to cover all your living expenses while you look for other work options.
  • Dip into your savings(if you have them) – If you have managed to save up some spare cash for emergency purposes then this is the time to start using that money because loosing your main source of income definitely counts as an emergency. It is best to keep 1 to 3 month emergency fund for situations like these as this money can help you keep living comfortably even if you have lost your job and have to pay those monthly loan payments.
  • Try to find another job – Finding your next job is a no brainer and you have to start looking for other employment options as soon as you know that you will be let go from your previous job. That means you have to start sifting trough job opening listings as well as try to contact as much companies in your local area as you can and ask them for a job interview. Finding a new job is not easy but in todays fast moving economy there are free jobs everywhere and you just have to know the places to look for them.
  • Limit your expenses – If you have lost your job then you must limit your expenses and stop spending money in places that are not vitally important. If you don’t have a regular income or get just a fraction of what you got before then you need to make a budget and slash those expenses in areas that are not that vital to your health and well being.
  • Sell your stuff – If you have a spare car, home appliances or some real estate then maybe this is the time to finally get rid of those things and get some money by selling them. Of course you can also try to rent out some of those things and if you have some real estate then maybe renting out is the best option you can have as you can get a fixed monthly income that you can then use for paying back your debt.
  • Ask for help – And the last course of action you can do is to ask for help from your friends or family. You can try to either ask for a loan or for some other help like a spare room where you can stay till you find a new job or think of other such actions that could save you considerable amount of money.