Politicians are great at making promises, but they simply have no quick solutions to the current economic crisis and the resulting unemployment. For many jobless people the expense of owning a car is a survival tool, not a luxury. While fit urban dwellers can switch to bicycles or public transportation, this solution is not practical or even possible in many situations.
When faced with long-term unemployment, the best advice is to become totally realistic. Food and shelter come first, followed by long-term commitments such as car payments. When there is not enough money left over to pay that particular bill, one of the first things to do is to call your creditors, and explain exactly what has happened.
Do not skip car payments without permission. This may lead to repossession, and complete loss of credit. If your payment record has been generally good, there is the possibility of a one-time loan deferment. Before calling your bank, have the necessary documents at hand, including your loan and vehicle identification numbers.
A payment deferment is only a short term solution. In addition, cut down on unnecessary trips. Arranging all errands into one excursion can save not only gasoline, but also reduces wear and tear, and that means fewer regular repairs. Shop for the cheapest gas in your area on line, and make it a point to fill up at that station.
Accidents can happen to anyone. While eliminating auto insurance sounds tempting, that can be a very serious and costly mistake. Insurance is not a luxury, but a mandatory requirement in most areas. The first step in cost-cutting is to examine your policy to see if you are paying too much for your current vehicle.
Collision and comprehensive coverage is necessary when a car is new, but older cars generally are worth less, and the cost of repairing one can be more than its total value. Some cut back on liability coverage during unemployment, a risk that is not recommended, but one which can be necessary in dire circumstances. Do not, however, put yourself in danger of being financially ruined due to an accident.
Talk to your current insurance company about reducing expenses, without necessarily telling them you are currently unemployed unless required to. Use the Internet to comparison shop. While all companies advertise the lowest prices, there are many individual discounts available. As a last resort, do not be afraid sell that expensive car and get an more economical used vehicle that costs less to operate.
When faced with long-term unemployment, the best advice is to become totally realistic. Food and shelter come first, followed by long-term commitments such as car payments. When there is not enough money left over to pay that particular bill, one of the first things to do is to call your creditors, and explain exactly what has happened.
Do not skip car payments without permission. This may lead to repossession, and complete loss of credit. If your payment record has been generally good, there is the possibility of a one-time loan deferment. Before calling your bank, have the necessary documents at hand, including your loan and vehicle identification numbers.
A payment deferment is only a short term solution. In addition, cut down on unnecessary trips. Arranging all errands into one excursion can save not only gasoline, but also reduces wear and tear, and that means fewer regular repairs. Shop for the cheapest gas in your area on line, and make it a point to fill up at that station.
Accidents can happen to anyone. While eliminating auto insurance sounds tempting, that can be a very serious and costly mistake. Insurance is not a luxury, but a mandatory requirement in most areas. The first step in cost-cutting is to examine your policy to see if you are paying too much for your current vehicle.
Collision and comprehensive coverage is necessary when a car is new, but older cars generally are worth less, and the cost of repairing one can be more than its total value. Some cut back on liability coverage during unemployment, a risk that is not recommended, but one which can be necessary in dire circumstances. Do not, however, put yourself in danger of being financially ruined due to an accident.
Talk to your current insurance company about reducing expenses, without necessarily telling them you are currently unemployed unless required to. Use the Internet to comparison shop. While all companies advertise the lowest prices, there are many individual discounts available. As a last resort, do not be afraid sell that expensive car and get an more economical used vehicle that costs less to operate.
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