Don’t do any of the things on this list. Just don’t. They will bring you to harm down the road and get you into a permanent cycle of debt – and this is a temporary situation.
Don’t get a payday loan.
Don’t get a “consolidation” loan that will stick you with huge interest.
Don’t put everyday expenses on your credit cards.
Don’t take out a home equity loan or title loan.
Payday loans are high-interest short-term loans and while they can pay a bill in the short term, it costs you a lot in the long term as you cover the shortfall with loan after loan. Consolidating debts is a good idea, but only if the payment is reasonable. Having just one payment is a great idea – as long as it’s not more than the conglomerated payment was before the loan. For instance, if you’re shelling out $1,000 each month in credit card payments, don’t take out a loan that has you paying more.
What You Should Do
“Okay, what should I do?”
I’m glad you asked! The first thing you should do is slow down and walk through each decision. Panic lands you in trouble, and though it’s difficult not to panic when your livelihood is at stake, you have to keep a cool head.
Unplug. The news cycle will wind you up and drive you crazy as you try to do whatever you can to figure out when you might go back to work or get paid.
Sit down and look over your debt and decide whether or not you need to consolidate, renegotiate, or look at a personal bankruptcy. If you are just limping along as you service your debt with minimum payments, it might be time to think about a Chapter 7 or Chapter 13 bankruptcy.
Don’t vegetate. Being a couch potato might be appealing for a day or two, but you do need to get and stay in an active routine.
Try a gig. The gig economy is a real thing and while it has issues, it does put money in people’s pockets. Drive for Uber, Lyft, Postmates, or try out your talents on Taskrabbit.
Get ready to go back to work. When you get back there’s going to be an unholy backlog of stuff. You’re going to have to stay up to speed on new items hitting your inbox while clearing out the pre-furlough items.
Don’t forget to update your resume and maybe get ready to jump to a new position.
If You Need Help
At Van Horn Law Group, we know debt. We understand the havoc it can bring to your life. This is why, in times of financial trouble, you need the best possible advice. Our Fort Lauderdale and West Palm Beach offices are open seven days a week, to make it easy for you to see us and your first consultation with an experienced attorney is free. Get in touch with us, read through our blog, and we’ll get you through this!
What to Do (and What Not to Do) When You've Been Furloughed
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