Managing debt without income requires a different approach compared to when you’re employed. 

Fortunately, there are ways to pay down your credit card debt and keep your credit in check, even when you’re out of a job. Here’s what you can do to improve your situation if you find yourself unemployed with credit card debt. 

Reach out to your credit card companies and state that you can’t pay your balances because of unemployment. Depending on the company, there may be a hardship program to help you out. 

A hardship program can give you a lower interest rate or reduce your monthly payment temporarily. It may even let you defer payments or waive late fees.

As you speak to your credit card companies, make it clear how much you can pay now and when you think you’ll be able to repay your balances as usual again. Keep in mind that most hardship programs require you to apply for them. You can visit a credit card company’s website to learn more about who qualifies for their hardship program and how you can take advantage of it. 

If you’re out of work, you may receive financial assistance through your state. While eligibility requirements vary, most states require that you’ve been employed for the past 12 to 24 months, earned a minimum income, and are actively searching for a new job. 

Typically, you’ll receive a percentage of your lost income every week. It might take a few weeks for the benefits to kick in after you apply and get approved. 

There are several other sources you may be able to turn to until you get back on your feet, including:

Ideally, you’d keep your credit card use to a minimum while you’re unemployed. Even though credit cards can help you cover your expenses, they could also steer you into a cycle of debt. If you miss even one credit card payment, you’ll be on the hook for interest charges and potential late fees that can be difficult to repay.

If possible, use any cash savings you have and explore resources or government benefits. You might also want to pick up a temporary job or a side hustle, like delivering groceries or driving for a ride-hailing service so you can earn some cash until you find permanent employment. 

Debt consolidation allows you to combine all your credit card balances so that you have one debt to pay off. Since you’ll only have one payment to keep track of, this strategy can make it easier for you to manage your credit card balances. Depending on the debt consolidation method you choose, you may even save money in the process. Here are several debt consolidation options to consider while you’re unemployed. 

Check Out: Debt relief vs. debt consolidation: What’s the difference?