Posted on July 1, 2009 at 4:43 am how can an unemployed person pay down debts? especially in recession? it's impossible to get a job!

Posted on July 1, 2009 at 5:02 am what kinds of jobs are you looking for? is the job that you've applied for need 2 weeks to a month to respond? i think you should look for another one, in the meantime you can file for unemployment benefits.

Posted on July 1, 2009 at 5:08 am Try to also sort out your debts in order of which ones have high interests, as that should be the order of paying them down, when you finally have the money to pay them down. If you have mostly credit card debts, try the negotiation route. It's a good time to call your creditors regarding your debt as they have just realized that it's better to collect however much from the debtor --than nothing at all. It may not be easy, but you should give it a try. The sooner you contact them, the better for you mentally.

Posted on July 1, 2009 at 5:13 am Most creditors have a hardship program. Depending on the debtor's financial situation and record with the bank (good payment history), they can offer to reduce the interest rates or freeze it, they can extend and modify the payment terms, and/or they can even cut your total balance. Those may not be easy to negotiate on your own though, but you can try. What you can also consider is enrollment in credit counseling or debt settlement. If you want to know more about those, you can fill out one of those carrot colored forms, and speak with a debt expert for free.

Posted on July 1, 2009 at 7:56 am Blur makes a good point. If you have just recently lost your job you can contact your creditors to see what types of hardship programs they may offer. These usually entail lowering interest rates or getting a lower monthly payment for a fixed period of time. Also, you could consider selling any liquid assets that you have but don't really need to pay down your debt while you are looking for a job. Or you can consider hiring a debt settlement or credit counseling firm to help you as well. Debt an unemployment is never a pleasent experience, but you do have options! Feel free to fill out a form on DestroyDebt.Com to see what the best path may be for you.

Posted on July 2, 2009 at 1:16 am oh..so many replies! thank you all for those, but after reading i realized something--what if im unable to make payments, at all, for months and months, as it is hard to get a job these days, i dont see it improving for years even, what happens to me and my debts then?

Posted on August 20, 2009 at 3:01 am * You'll be contacted by your creditors and/ or debt collectors.* In the event that you are still unable to pay, they may charge off the account.* there is also a possibility that the creditor may take you to court because of this.

Posted on August 31, 2009 at 11:22 am Debt and unemployment is a tough scenario. I was there myself- it took a strict budgeting plan and some help from a credit counseling agency but I managed to become debt free in less than 5 years!

Posted on August 31, 2009 at 10:23 pm take me to court..debt, unemployment, and jail (?)debt free in less than five years using credit counseling. it sounds like i would have to pay for it, how much did you say it costs?

Posted on August 31, 2009 at 10:34 pm Being in debt during an unemployment period does not have to translate into you getting sued or going to jail. Nobody goes to jail for being unable to pay debts. The court would just find ways to make you pay via a judgment. A judgment could be any of the following: wage garnishment, bank levy, or property lien. Before the judge hands a judgment, you'd be first sent a notice, and you'd be given time to respond. In the event that you are unable to receive a notice, a default judgment is possible. Meaning the court may grant the creditors what they want- but then, if you honestly did not get a notice, I think that you can file a counter petition to have the judgment reversed. I'm not an attorney, perhaps you should speak to one with regards to this.