How to pay off credit card debt while unemployed

Paying off credit card debt while unemployed can be difficult, but not impossible. Here are some strategies you can use. (shutter stock)

Unemployment can lead to serious financial hardship, especially if you have outstanding credit card debt. It can get out of hand.

And if you can’t pay with your credit card, your credit score will suffer. Getting rid of credit card debt while unemployed can be difficult, but possible. And doing this will free up money that can be used elsewhere.

If you’re unemployed and looking for a personal loan, Credible makes it easy. Check interest rates on pre-qualified personal loans From various lenders, all in one place.

Can I pay with a credit card if I am unemployed?

Bills can be difficult to manage while unemployed, and certain payments may need to be prioritized over others. For example, don’t let your rent or mortgage payments fall behind, and keep paying your utility bills.

And you must continue to make at least the minimum amount of payment on your credit card.

However, if possible, try to pay at least the minimum amount. Credit cards have high interest rates, so you can only pay the bare minimum, and your debt will continue to grow.

How to handle credit card debt while unemployed

Here’s how to manage credit card debt while unemployed.

• Please consult your credit card company. Contact your credit card issuer to see if it works, especially if you’re having trouble paying the minimum amount. may be temporarily reduced.
• unemployment file. If you’ve been laid off from your job, you may be able to apply for unemployment insurance. These benefits usually pay a percentage of your previous wages, but the exact amount depends on where you live.visit Department of Labor website Look up unemployment benefits in your state.
• free the money You can also look for ways to put more money toward credit card debt by minimizing other budget items. For example, you can cancel a subscription you no longer use and put the money towards your credit card instead.
• Look for temporary income. Find ways to bring in extra income that you can put towards your credit card. For example, you can look for a more permanent job while working part-time or driving with a ride-sharing company.

7 Personal Loan Lenders with Low or No Income Requirements

if you Receiving unemployment benefits, you may still be eligible for a personal loan. More lenders are looking to take into account factors other than your income. However, be aware that some lenders may require you to prove your ability to repay the loan.

These 7 trusted partner lenders have flexible income requirements for personal loans:

best eggs

• Minimum Income: Verifiable income must support ability to repay
• Loan Amount: $2,000 to $50,000
• Repayment terms: 2 to 5 years

freedom plus

• Minimum Income: No income requirement
• Loan Amount: $10,000 to $50,000
• Repayment terms: 2 to 5 years

happy money

• Minimum Income: No income requirement
• Loan Amount: $5,000 to $40,000
• Repayment terms: 2 to 5 years

lending club

• Minimum Income: Verifiable income must support ability to repay
• Loan Amount: $1,000 to $40,000
• Repayment terms: 3 or 5 years

prosper

• Minimum Income: some form of income
• Loan Amount: $2,000 to $50,000
• Repayment terms: 2 to 5 years

reach financial

• Minimum Income: $1,000 monthly
• Loan Amount: $3,500 to $40,000
• Repayment terms: 2 to 5 years

start-up

• Minimum Income: $12,000
• Loan Amount: $1,000 to $50,000
• Repayment terms: 3 to 5 years

trusted visit Compare personal loan interest rates From a variety of lenders without impacting your credit score.

Pay off your credit card debt with a personal loan

If the credit card company cannot respond, Payment of card balance with personal loan It may make sense. Replacing your credit card debt with a personal loan has many benefits, including:

• low interest rates — Personal loans have much lower interest rates than credit cards. As of May 2022, the average credit card interest rate was 16.65%, according to Federal Reserve data. By comparison, the average 24-month personal loan interest rate for the same period was his 8.73%, so it tends to be much more affordable.
• Fixed monthly payments — A personal loan is a type of installment loan in which you pay the same amount each month for a set period of time. This makes it easier to plan your monthly payments, but you don’t have the option of paying less if your monthly income is low.
• Flexible income and credit requirements — Some lenders allow you to take out a personal loan even if you have low income or bad credit. However, this strategy has drawbacks. Low credit personal loans tend to have high interest rates, high fees and unfavorable repayment terms.

To qualify for a personal loan, you must meet the lender’s income, credit score, and other requirements.of exact requirements Varies by lender.

If a personal loan to pay off your credit card debt is right for you, Credible makes it quick and easy Compare personal loan interest rates to find the one that best suits your needs.