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Updated on Tuesday, April 5, 2016
It seems like every day a new corporation announces its decision to layoff hundreds or thousands of U.S. workers and ship the jobs overseas. The cosmetic company Avon, for example, just recently announced that they’re moving 2,500 jobs to Britain.
Similar layoffs from company’s around the country, while beneficial to the company’s bottom line, leaves U.S. workers frustrated, unemployed, and facing serious money problems.
One of the biggest hurdles during unemployment is finding a job that pays enough to replace lost income. This begs the question: If you’re offered a low paying job, and you’re unemployed with mounting bills and debts to pay, should you take the job offer?
In short, yes, you should. If you’re unemployed, or about to become unemployed, and there are no other job offers on the table, take the job that is offered to you until you can find something better. The following are six reasons why you should never turn down a job offer during a time of unemployment, even if it’s a low-paying one.
1. Companies don’t always hire the unemployed
Until you can find a better-paying job, take that low-paying job, because some companies don’t like to hire a person who is unemployed. It doesn’t seem fair that you can’t get a job unless you have a job, but it’s an unfortunate reality and frequent business practice in our country. That low-paying job may not be your first choice, but it is a job, and having a job will alleviate your financial woes (at least a little bit) and potentially give you leverage to get a better paying job.
2. Making payments on time needs to be your priority
If you decide not to take that job, and nothing else comes along, you could be facing a serious financial crisis. A worrisome statistic put out by the Bureau of Labor Statistics shows that 30.4 percent of unemployed persons in the U.S. have been unemployed for 27 weeks or more. If this happens to you, unless you have a hefty savings account to fall back on while you’re job searching, you’re going to be facing a tremendous problem paying your monthly bills. And missing payments can have serious long-term consequences.
35 percent of your credit score is determined by your payment history. It’s the largest factor in determining your credit score. Just one 30 days late payment can affect your credit score for two years, and one 60-90 day missed payment can affect your score for up to seven years.
Snag that low-paying job while it’s still available to you because you don’t want to have to ask yourself the question “which bills should I pay this month?”
3. Finding part-time or seasonal work can supplement the low paying job offer
How are you going to pay your bills with a job that doesn’t leave much to live on, though? A low-paying job isn’t ideal, especially when you have mounting debt and looming bills to pay, but, again, a low-paying job is better than no paying job.
Depending on the economy and resources in your area, you sometimes have to take what you can get, especially when no other jobs seem to be forthcoming. Finding a part-time or seasonal job may be a good temporary solution to help you supplement your income until you’re able to find ideal employment that meets your everyday money needs.
4. Balance transfer credit cards can help you pay off debt efficiently
Did you end up charging monthly needs to a credit card during your period of unemployment? If you have taken that low paying job, you’re working part-time, and you’re still unable to meet your minimum payments, then you may benefit from applying for a balance transfer credit card.
If you qualify, a balance transfer credit card may help you by consolidating your credit card debt onto one credit card at 0% APR and enabling your entire monthly payment to go towards the principal balance. There may be a balance transfer fee for the debts you’re rolling over, often between 2% to 4%, but that usually pays for itself in just a few months when you factor in the interest rates you were paying. Find balance transfer options here.
5. Debt consolidation loans may help in the short term
Debt consolidation loan also known as a personal loan is another option to consolidate debt or get access to money you may need in a pinch. It’s much easier to be approved for a personal loan if you are employed. If you’re wary about getting another credit card, then a personal loan might be a good fit for you. An ideal personal loan comes with no origination fee and no pre-payment penalty.
The personal loan marketplace has been heating up in recent years with lots of competition to the traditional brick-and-mortar bank. Many personal loan providers give you the option to check if you’re pre-approved and your rate without harming your credit score. You should be sure to shop around in order to get the best deal. Even if some lenders do a hard pull of your credit report, it will only count as one inquiry if you do your loan shopping within a 30-day window.
6. Do what you need to do to get back on your feet
If you have just lost your job, be sure to check to see if you qualify for government benefits for the unemployed. This aid could help you get back on your feet while you search for a job.
A word of encouragement to those struggling: we all have to do what we have to do to keep a roof over our family’s head and food on the table. Don’t feel ashamed of a job that isn’t quite what you’re used to. Remember, this low-paying job is just temporary, and you’ll be back on your feet before you know it.