 TITLE: How to Manage Credit Card Debt If You’re Unemployed CONTENT: Avoid Adding to Your Debt\n-------------------------\nIt may be tempting to use credit cards to pay for essentials when you're not earning income. But dealing with an unexpected period of unemployment is an example of why it's so important to maintain an emergency fund.\nIf you have cash saved, draw on those reserves to pay bills instead of adding to high interest credit card debt, which will only be harder to pay off later on. Avoid dipping into your 401(k) or individual retirement account: Retirement accounts are meant to house long-term savings that grow over time. Withdrawing money means you'll lose out on investment gains that could make a significant difference to your account balance in retirement.\nIf you don't have an emergency fund and can't afford to pay for essentials, such as housing, during this time, consider taking out a personal loan—particularly from a local credit union. Personal loans may come with lower interest rates than your credit cards carry, and credit unions often have more lenient credit requirements than traditional banks. Borrow the smallest amount you need to cover expenses during unemployment so that repaying the loan won't add to your financial stress later on. END