Having debt is tough when you are employed. How do you get rid of debt after you lost your job?
If you feel like your situation will never improve, no matter how much burnout you’re experiencing now, you can recharge, and turn things around.
Don’t believe me? Meet Jeremy, he spent almost four years working nonstop and not making enough to make ends meet. This lead him into debt, and then matters got worse when he lost his job. Jeremy wrote into Ask Carly for tips on finding a new job.
Even though he lost his job, he wanted to get rid of debt as fast as possible.
Losing his job was a wake-up call.
His job-loss forced him to recharge and reevaluate everything to make life changes. Burnout had taken over and he knew something had to change.
“It’s hard to prioritize self-care, and it’s a cultural meme that you should always be “on,” but like electronics you have to recharge,” he said.
First when he lost his job he got much needed rest.
Then he knew he had to focus on his job search and his debt was like a weight and something he wanted to be free from.
Jeremy had read books, and watched videos on how to get out of debt, but was looking for help in-person with someone local.
It was fortuitous that his friend was planning his birthday celebration and asked Jeremy what he wanted for his birthday.
Jeremy said, “I want this class.”
From taking Best Money Class Ever, he got crystal clear on what he was looking for with his job search and knew that it was time to find a position with a stable income, “doing the class was really helpful,” he said. Related Posts:
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Make your job search a priority
Jeremy looked for new job opportunities online with sites like Indeed, asked friends, and applied to as many places as possible. He found a position within a month that was salary plus commission that provided him with stability and room to increase his pay. Plus, he has the time to do what he is most passionate about: offering coaching for yoga, health and fitness.
Considering that on average it takes twenty weeks to find a new job, this was great news.
When looking for a job his advice is to, “Cast a wide net and make that the game… (find out) how many opportunities you can create.”
For tackling debt, his story is a story of brutal honesty and grace.
CNN Money found that approximately 1 in 3 Americans (77 million people) have bills unpaid and in collections. For anyone dealing with money in collections, it is easy to ignore the debt.
When you lose your job it’s more important then ever to have open conversations with your debtors.
At the time Jeremey lost his job, he owed $8,000 to a business for an educational training program that he hadn’t been making the monthly payments on the loan.
While he was unemployed he decided to openly talk to the company and it was a rare case that the Austin affiliate office happened to be closing. The office was in the process of resolving debts and decided to write-off the debt completely.
He also had a personal loan for $2,000 and after talking to his friend that lent him the money, his friend forgave the debt- another act of grace that he was incredibly grateful for.
With his new job he then paid off about an additional $1,000 in credit card debt.
Jeremy’s quest to become debt-free isn’t over yet, but he’s making changes and rebuilding his life.
After all, getting out of debt is hard, “Don’t do it alone. Make sure someone else knows that you’re doing it. They can hold you accountable and see thing that you might not see,” said Jeremy.
In conclusion, when you lose your job don’t hide from your debt.
Congrats Jeremy on your new job and making it a priority to become debt-free.