Survival Guide for Employees in Between Jobs


There are many reasons to change jobs, from better opportunities and improved earning power to friendlier atmosphere and work environment. How do you manage all bills piling up when switching jobs though?

How to Manage Bills

If you have cash in your savings account, you can use it to pay gas, water, Internet, TV, electricity, and other utility bills. Obviously, one way to manage bills is to downsize and cut unnecessary expenses, especially if you are short of cash. To manage bills more effectively, you may want to prioritize and keep an eye on your finances. When money is tight, make sure you meet basic necessities first, including utilities, mortgage or rent payments, household necessities, taxes, and groceries. Other expenses to meet include loan payments secured by collateral, car payments, insurance, and income tax. If you ran out of cash or face an emergency, then it is probably time to look for different financing options.

Borrowing Solutions

There are different financing options, depending on your credit score and whether you are currently employed. Payday loans, for instance, are available to borrowers with various credit profiles but you may not qualify if you are in between jobs and unemployed. If you have a credit card with an affordable interest rate, you can use it in case of emergency or to pay for household necessities. Another option is to contact Canadian bad credit lenders that are willing to lend money to borrowers in between jobs. While they offer higher rates compared to secured loans, this is an option to explore. There are financial services that match borrowers with potential lenders and offer access to borrowing solutions that are publicly unavailable. They connect applicants with co-ops, private and peer to peer lenders, investment banks, and other entities. Lenders also advertise fast approval and application processing. This is good news if you need urgent cash and given the fact that it takes weeks for banks to process applications. And applicants can contact customer service representatives in different ways – through Twitter, Facebook, email, by phone, and so on. There are lenders that run a credit check but stellar credit is not a requirement. In fact, some finance companies also offer credit rebuilding programs. While many issuers request information about monthly income, there are lenders that offer loans to unemployed applicants. Usually, borrowers are asked to offer some asset to guarantee repayment, and they can choose from an array of borrowing solutions and services, including equity mortgages, debt consolidation loans, rescue from foreclosure, credit report analysis, and more. Secured loans go with affordable rates and payments but borrowers risk losing a valuable asset (vehicle, real estate) in case of default.

The Application Process and Information Required

To apply for a loan, customers fill in an application form at a local branch or online and provide information such as current mortgage on their business or loan, estimated value of their business, property, or home, whether they own or rent, total amount required, and type of loan (i.e. refinance, home improvement, equity, second mortgage, first mortgage, etc.). Some lenders also offer unsecured loans and weigh different factors, including employment status, additional income, credit rating, debt to income ratio, and others.