In Georgia, the unemployment rate has topped 7 percent. Some residents are taking lower-paying jobs or part-time work to try to make ends meet before the benefits run out. Others are running out of benefits and options before finding a new job in a tight job market.
Congress stepped in last week with a 13-week extention of unemployment benefits in states were the unemployment rate tops 6 percent, as it does in Georgia.
An economist with the Economic forecasting Center at Georgia State predicts that by the end of 2009, Georgia will have lost 147,000 jobs in the economic downturn.
While the federal money helps, the growing unemployment rate is draining the resources of state governments across the country. Economists are forecasting that the United States will lose 2 million jobs in 2009. And that is on top of the 1 million jobs lost so far this year.
That federal help also comes at an expense. If state governments haven’t got the reserves to pay the unemployment benefits, they are given the funds as a loan from the federal government. If the funds aren’t repaid quickly, the states must pay interest on the loan.
Repaying those loans, may mean that employers will pay higher unemployment insurance taxes down the road. Georgia’s Unemployment Insurance Trust Fund balance stands at around $1 billion, and is expected to need no help from the federal government to pay benefits in the short term. But Georgia Labor Commissioner Michael Thurmond said recently that he could not rule out raising those taxes down the road.
In the current economy, many people are learning how to get by on less. Those who have lost their jobs may be trying to get by on unemployment insurance. Some have taken jobs making less money than they were making before. Other still have run out of unemployment benefits and are unable to find even part-time work. Any one of these situations can make it difficult to keep up with basic monthly expenses, such as house payments, car payments or food. Using credit to cover the gap left in your expenses will only lead to even more bills you cannot pay.
If you are already in over your head with credit-card debt, then continuing to use this avenue to finance your lifestyle will lead to more problems down the road.
If you are having trouble paying your mortgage, you need to act quickly to prevent losing your home to foreclosure. Lenders can foreclose on a home in Georgia and sell the property with little or no notice to the homeowner, depending on the property’s deed of trust. Foreclosures are usually completed in 30 to 45 days in Georgia.
While banks have been reluctant to negotiate mortgage terms for those struggling to make ends meet, some homeowners have had success negotiating with their lender to keep their homes and repay the mortgage on extended terms. If you think you might have to fall behind on a mortgage payment, acting quickly is in your best interest.
If your lender is unwilling to negotiate, you may want to consider bankruptcy. Filing a Chapter 13 bankruptcy stops foreclosure on your home and restructures your debt into a more manageable payment plan.
Many people feel that filing bankruptcy is tantamount to admitting failure. Nothing is further from the truth. A bankruptcy filing simply means that you have become unable to manage the debt load that you have accumulated. It happens to people more often than you think. Over 800,000 people filed for bankruptcy protection in 2007. This year, the U.S. Bankruptcy Courts expect that close to one million people will seek bankruptcy protections.
Understanding your financial situation is the key to saving your home and preventing foreclosure. Talk to a professional bankruptcy attorney to evaluate your case and see if bankruptcy is right for you.
Complete the Contact Us Form below and we will call you right away to answer your questions about Bankruptcy. Don't Wait -- Find out if Filing Bankruptcy is your best option today!
