Is Paying off Debt without a Job Impossible?

 

Nowadays, it’s almost impossible to run into someone who isn’t paying off debt. Unless you’re still a child without any earnings, you might have some form of car loans, credit card payments, mortgages or more that you’re trying to pay off. While paying off debt can be hard, what are you going to do if you’ve suddenly lost your job? As your main and often times, only source of income, if you lost your job, you might be struggling to understand what to do.

Luckily, if you find yourself in this situation then know that you can pay off your debt without a job. It’s going to be exceedingly hard but it’s not impossible if you follow these steps:

Identify All Your Debts

The first thing you need to do is ensure that you identify your debts and then prioritize them accordingly. Just break them down into priority and non-priority debts on the basis of the consequences that non-payment would entail.

1.     Priority Debts

Debts that fit under this category are the payments you need to make without fail. These could include your utility bills, taxes, rent, mortgage and more. If missing payment of anything means you’re going to face repossession of your house or loss of essential items such as gas or electricity, it’s a priority.

2.     Non-Priority Debts

Debts that fit under this category are the payments such as bills for credit cards, banks, unsecured loans and more. Keep in mind that non-payment of these still has consequences but it’s not going to mean you lose your house.

Claim Any Insurance

When you’re working you might have signed up for various income protection plans. These are offered in order to allow you to have some sort of backup plan in case you end up losing your job. Based on your needs, you might need different forms of the following insurance active:

1.     Mortgage Payment Protection Insurance (MPPI)

This can help you make your mortgage payment when you are unable to earn. However, this is available for a limited time period only.

2.     Payment Protection Insurance (PPI)

Meant for credit card or loan payments, it will cover your payments for a time period, ranging from one to two years.

3.     Short Term Income Protection (STIP)

Again, meant for a time period of one or two years, this insurance will help replace a certain portion of your income until you start earning again.

Keep in mind that in the past, these payment protection insurances were sold to buyers in an off-handed manner, meaning that you may have this insurance and not realize it. Discuss this with your lender and make a claim. If your claim for insurance is being refused, even if you have this cover, you can claim compensation.

Work Out an Emergency Budget

Once you’ve gotten your insurance activated, it’s time to work out an emergency budget. Cut back all unnecessary expenses. Live as frugally as possible, even with the insurance while you try to work out another viable means of generating an income.

Do not overlook the fact that these payment protection insurances are active for a limited time period. You have to make sure you can shoulder the weight of your expenses again once the coverage is gone.…

5 Things to Do If You Lose Your Wallet

We’ve all been there.

We’ve all experienced the anxiety while trying to find our lost wallet, the frustration at not being able to, the dread of facing the consequences, and the lingering regret due to losing it in the first place. Sure, it may seem funny when you look back at it. However, losing your wallet—apart from the major inconvenience it may cause—can be financially devastating.

When you lose the wallet, you don’t just lose the cash in it. You lose half your life. From credit cards to driving license, and from insurance card to ID, all lost in an instant. The least that can happen is that you lose your valuable cash. At its worst, however, the consequences of losing your wallet may include identity theft and major fraud.

But some of the worst potential effects of losing your wallet can be avoided if you follow these 5 simple steps:

1. Determine whether it’s stolen, lost forever, or just misplaced

Before you take any steps to prevent some of the worst consequences of losing your wallet, you need to do first things first. And the first step, that many people often miss in the immediate aftermath of realizing they’ve parted company with their wallet, is to assess the situation.

Retrace your footsteps. Determine when exactly it was that you lost your wallet. If possible, try to visit all the locations you visited earlier. You might be wondering why all this is important. You really don’t want to take all the anti-theft measures like cancelling your credit cards or reporting a stolen wallet just before finding your wallet on the bedroom floor.

2. Cancel your debit and credit cards

You may have lost all the cash in your wallet but you are also at the risk of losing more money from your account if you don’t take these steps.

The first thing you should do after being sure that you’ve lost your wallet is to call the bank to cancel your ATM  and credit cards to prevent whoever found or stole your wallet from accessing your bank account or spending on your credit card.

3. File a police report

If you’re absolutely sure that your wallet was stolen, never ever hesitate to file a police report. This is one of the most important ways you can prevent identity theft.

Make sure to list everything you lost along with your wallet in the police report.

4. Don’t forget to set up fraud alerts

So now you’ve frozen your credit and debit cards and filed a report with the police. That makes you safe from identity theft, right? Absolutely wrong! Although thief can’t use your existing credit or debit cards, they can always issue new ones using your ID.

This is why it is crucial to set up fraud alerts with the any one of the 3 major credit unions: Equifax, Experian, and TransUnion.

5. Keep an eye on your credit report

While it is important to take the preliminary steps after losing your wallet, you need to keep an eye out for suspicious activity in the long run.

Not all thieves are in a hurry to go on a shopping spree after finding your wallet. Some might even sit on the information to let the danger pass before they make their move. This is why it’s important for you to review your credit report after every few months. If you find any suspicious activity, report to the authorities immediately.…

4 Tips on investing in the stock market and earning money

For most individuals, being financially independent is a big challenge. As per the best financial experts, one must be totally independent financially after reaching the age of 40. If you are looking to invest in stock market shares, you need to follow certain tips. Unhealthy financial practices and emotional spending must be done away with. The below stated tips are must to know for every newbie in the stock market. By being smart and tactful, a lot many investors are making money through this general finance medium.

There are many people who simply rely on luck when they invest in shares and blame the destiny for losing money. But this is not so. Investors make some grave mistakes due to which they lose money. The person who invests without having any plan in the mind is sure to fail. Prior to investing, know your goals and try to invest on a long term basis. Think deeply whether you are saving for the retirement, to buy a home or just for meeting educational expenses of your children. The stock market is highly volatile and thus it is not wise to set short term investment goals. If you need your investment back in a few months, the stock market is not for you. Always keep in mind that the growth of your investment portfolio is reliant on the invested capital, the annual earning on the capital and the time period you can allot.

General Finance

Get to know about your own risk tolerance. Although the psychological trait is based upon the genetic factors, it is influenced by income, home background and education. Check out the degree of anxiety you experience after making an investment. If you lack risk tolerance, the stock market is again not meant for you. By knowing the risk tolerance, you can avoid the investments that make you very anxious.

Always make logical decisions when it comes to buying and selling of stocks. If you are known for making rash decisions, you will lose a lot of money in the stock market. Learn how to control your emotions and try to have a balanced mindset. The person feeling negative about the market is addressed as ‘bear’ and the one who is positive about the stocks of a company is termed as ‘bull’. The price of the securities keeps changing due to the anxiety of bulls and bears. So, when you purchase the stock, find out the reasons why you want to buy. It is mandatory to check out if the buying decision is guided by anxiety. Impulsive buying has no place in the stock exchange market.

If you have never made an investment in the market, learn about the basics. Get to know about stock market terms, metrics, techniques of stock selection and timings, the order types and various kinds of investment accounts.

Apart from the mentioned tips, there are various other golden rules to follow. Smart investors tend to diversity their investment portfolio to minimize the risk. You can buy the stocks of different companies rather than choosing anyone.…