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With a budget planner you can be prepared for a financial emergency. The problem is if you lose your job and don’t have a plan in place but don’t worry there are still ways to budget out by taking some creative action. The move that we’re talking about today is going to be that of getting your consumer debt reduced until you’re back in the position to resume your regular payments.

The following is what will help you learn how to do that.

Interest Only Payments

Call your bank and your credit card company and any other lenders to see how much you’d be able to save just making interest only payments on your loans and your credit card debt. Dependent on what you have left owning those payments can really help you save and help you live within your means while you’re busy looking for another job.

Alternative to Interest Only

If those payments of interest only aren’t possible then you should try to negotiate for a reduction of your bank debt and your credit card payments by seeing if you can get them spread over a longer term.

Forbearance Agreement

You’re going to want to contact your bank or other mortgage company to ask for something that’s called a forbearance agreement. What this does it is it allows you to still pay your monthly payment but just an actual fraction of it until you’re able to get back to work again. In order to prevent a possible foreclosure, and the fact that you still want to make some sort of a payment, most all mortgage companies are going to be willing to negotiate to this type of an agreement.

Utility Budget

Make contact with all of your utility companies and other services to see if you can work out a budget program and then make all of the payments that you promised within this budget agreement.

Debt Counseling

Another option is to get some debt counseling. You can contact the CCS (Consumer Credit Counseling Service) in your local area to get some free debt advice. They can help you with the information that you’ll need to get your household budget revised to your situation and help you negotiate some reduced loan payments so you can avoid having to go through foreclosure and find an alternative to bankruptcy.

Repairing Your Credit

Once you’ve found your new job you’ll be able to get back to repairing your credit. You should write a short statement, about 100 words, that can be placed into your credit report permanently. This should explain the financial hardship that you went through as a result of your job loss. Finally you should contact all the creditors you did before and negotiate your debt repayment plan to get back on track. Create your budget and make sure that you put some money away as you can for a future emergency reserve.