by Jennifer Chang
Paying for college can be incredibly challenging. If college debt and other expenses have ruined your credit rating, it is 
essential to look at what you can do to maintain good credit. Losing your job can lead to serious consequences for your finances as well. How can individuals with low or no income keep their credit in check? There are some options that can improve your credit and help prevent difficult financial strain as a result of poor credit.
Government Programs
One area that many people often turn to is the government. There are several government programs that will give you some financial relief. If you have a mortgage, look into the government relief programs that can provide financial assistance. Check with your own mortgage company to find out if they can defer payments for a few months as you focus on getting a new job to pay your mortgage. The Home Affordable Unemployment Program and the Hardest Hit Fund are those that provide the best options for paying your mortgage. The cause for many financial woes relates to expensive medical bills and other costs. Consider using unemployment insurance to help pay for the expensive medical needs that may arise.
Debt Consolidation
Focus on improving your financial situation by working on your debt. Debt consolidation can help you roll all of your debts into a single monthly payment. It can prevent you from having credit problems that will arise if you declare bankruptcy. Work with creditors to find out what they can do for you as you try to find a way to pay off your debts when unemployed or when you do not have a lot of money. Defer smaller loans so your mortgage is always a top priority. Asking lenders for a loan deferment can help. Your credit rating will not be hit while you are working to pay off the other loans that are of higher priority. Car loans and student loans are the ones that usually allow customers to defer payments for a few months as you work on paying off other loans. This is another reason why debt consolidation is a great method to consider when you have a lot of expensive costs.
Budgeting
It is important for a person to focus on financial survival and budget effectively. Monitor your credit rating to see where it currently stands. If you have a high debt ratio you will struggle to get by each month. This is a time to focus on setting priorities and concentrate on paying off the high debts quickly. Monthly credit monitoring is a great way to make sure you are repairing your credit. It is important to check on the report to see that your debts are being paid off and you are not dealing with identity theft and other issues. If you are planning to improve your future by focusing on your education, there are quite a few programs that can assist you. Check to see if you qualify for financial aid before you consider student loans. Many of the loans that are available for students do not require payment until their education is completed.
About the Author
Jennifer Chang, recent business school graduate who’s working on building up credit of her own. If you’re looking to help people with their finances, Jennifer recommends financial analyst jobs with moneyjobs.com.
