Debt help after a job loss
Losing income turns manageable debt into a crisis quickly. The right first steps depend on how long the gap may last. Here's how to protect the essentials, talk to creditors, and decide whether a debt relief program fits.
Total of credit cards, personal loans and medical bills.
Estimated savingsvs. paying only the minimum*
$54,387
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What should I do about debt if I lose my job?
First protect essentials: housing, utilities, food, transportation, and insurance. Apply for unemployment benefits, then call your credit card issuers and lenders to ask about hardship programs, which may lower payments or interest for a period. If your income stays lower long term and you have significant unsecured debt, a debt relief program or debt management plan may help.
- Know which bills to protect first
- Ask creditors for hardship help the right way
- Free evaluation when you're ready to plan
Why debt piles up after a job loss
A sudden income drop creates a few predictable problems.
Cards fill the gap
Groceries, gas, and bills move onto credit cards while you search for work, and interest builds.
Benefits replace only part of your pay
Unemployment benefits typically cover a portion of previous wages and only for a limited time.
A new job may pay less
Even after you're working again, a lower salary can make old payments unaffordable.
How we can help
Prioritize the right bills
Keep a roof over your head and the lights on first; unsecured debts like credit cards come after essentials.
Plan for your new income
Once your income is steady, even if lower, we can size a monthly program deposit to fit it.
Straight talk if now isn't the time
Debt relief programs require a monthly deposit. If you have no income right now, we'll point you to hardship options first.
Smart first moves
- File for unemployment benefits as soon as possible. Rules and amounts vary by state.
- Call your card issuers before you miss a payment. Many offer temporary hardship programs with lower payments or interest.
- If you have federal student loans, ask your servicer about unemployment deferment or an income-driven repayment plan.
- Avoid payday loans and cash advances to cover the gap; they add high costs to an already tight budget.
Common questions
Can I get debt relief if I'm unemployed?
Debt relief programs require you to make monthly deposits, so you generally need some income such as benefits, part-time work, or a new job. If you have no income yet, creditor hardship programs are usually a better first step.
What is a credit card hardship program?
Many card issuers offer temporary hardship programs that may lower your interest rate, reduce payments, or waive fees for a set period. You usually have to call and ask, and the card may be frozen while enrolled.
Which bills should I pay first after losing my job?
Focus on housing, utilities, food, transportation to look for work, and insurance. Unsecured debts like credit cards generally come after these essentials.
See what you could save.
Two minutes, six questions, no obligation. Checking your options won’t affect your credit score.