 TITLE: How to Manage Payments if You’re Unemployed CONTENT: Consider Debt Consolidation or a Credit Counselor\n-------------------------------------------------\nIf you're struggling to manage your debts during unemployment, one possible solution is to consolidate your debt. This is when you consolidate multiple debts (usually credit card debts) into one lower-interest form of debt, such as doing a balance transfer to a 0% APR credit card or a personal loan with a lower interest rate.\nIf that's not enough relief, you may want to seek the help of a nonprofit credit counselor. The National Foundation for Credit Counseling is a nonprofit organization that can connect you with an expert you can trust. Your counselor can work with your creditors and help you make a debt management plan (DMP) to get your finances under control. They can also help you make an emergency budget and a financial action plan.\nAccounts included in a DMP a credit counselor creates for you will include a statement that they are being repaid through credit counseling; this statement will not negatively affect your credit score. However, if repayment of the debt for less than originally agreed was negotiated as part of the DMP, the account payment status may be reported as \"settled.\" A settled account is considered negative and will hurt credit scores. For-profit debt settlement firms may offer to negotiate settlements with your creditors as well; however, they can be risky and expensive. Before agreeing to such a plan, make sure you understand the costs and consequences. END