Debt and Your Career Change

By: Michael Millington

After establishing yourself in the professional world, you might be hard-pressed to consider changing your form of employment at that stage. However, there are many reasons that one might look to leave their job and search for a new one. One huge reason is their ability to make money and pay off debt they may have lingering. If you believe you’re due for a change in career, there are a few things you should consider before you clear out your desk.

 

Will Your Skills Translate?

 

It is not uncommon for someone to feel bored with their job. Unless you’ve landed your dream job (or you work as a hobby), the thought might cross your mind to find a new career. One thing that you should consider is whether you’ll be able to use your current skillset for your future job. While having a basic skillset can qualify you for many jobs, obtaining a position that can help you maintain your monetary obligations may be a bit more challenging.

Higher level skills will help to translate into a position that can compensate well. While you’re looking for a job to utilize these skills, having your savings in place for the search period will help to alleviate some of the stress of the job hunt. To help in situations like these, your savings account should have at least six months’ worth of expenses at your disposal. Being able to take care of your rent/mortgage, utilities, food and other smaller, regular expenses can allow your focus to remain on your search.

One thing to consider is the possibility that you might not have the proper set of skills necessary to get the job you want. If you don’t believe your skillset is complete, it might be worth it to invest in certification classes. Classes like these can expand your knowledge of some of the more lucrative fields of business. It might not be in your budget, but it can make you look more appealing to businesses looking for someone with your skills. The sooner you find a position like this, the sooner your income gets back on track.

 

Will Your Debt Suffer?

 

One main problem with leaving a job to go hunting is the potential for your debt to suffer. Common debt issues that people run into involve their credit cards, which will accrue interest charges if they aren’t paid on time every month. It is possible to avoid this situation by paying off your credit cards before you decide to leave your job, but it’s unlikely that this will be possible if your credit balances are too large. While searching for a new position, there are two approaches you can have towards dealing with your debt.

One thing you can do is budget your debt payments into your savings and not use your credit accounts. Having your credit accounts paid for on the regular can help to improve or maintain your credit rating without worrying about interest fees piling up. The main drawback would be that you would have to cease your use of your credit cards in order to keep your debt growth minimal. If you continue to carry a balance then you will deal with interest each month, but not using your card will reduce the amount of interest you receive with each substantial payment.

The other way you can deal with your debt is by picking up part-time work while you search for your next full-time job. While the main expenses can still be paid for through your savings, the smaller expenses can be handled through an extra source of income. There are many ways to supplement your earnings, either through investments, contract positions, temp jobs, freelance jobs or part-time jobs. These options will allow you to make money to pay certain debts while leaving you enough time to continue your job search.

 

Should You Really Leave?

 

After assessing the skills you’ve amassed during your working years and whether your savings can bolster you for the time you would need to find a job, consider whether you really need to leave your place of employment now. Quitting a job without a plan rarely works out well, but sometimes quitting a job is not the answer at all. The dire financial position that comes with the sudden loss of a job can sometimes be too much to handle. Consider if you really want to leave your job or if you just want to reinvigorate your career.

If you find that you really don’t want to leave your job, find ways to make the position more engaging for yourself. Inquire if there are any extra duties you can undertake in order to diversify your responsibilities. Taking on extra work might result in a promotion or a pay increase, which may justify rethinking your departure. It’s always a good practice to ask your superiors if there isn’t anything that can be done for you before you decide to leave.

The best plan of action if you want to change your profession is make your plans before you leave your current job. Sometimes you can receive severance pay from your job. This can create an extra amount of money that can be put towards your savings. You might even be able to lessen your position to a part-time job while you search for another position elsewhere. Make sure you take into account all of the options your job can afford you before you leave.

 

Making big changes to your personal life can affect your finances in huge ways. Holding on to debt can work against you in many aspects when looking to change jobs or careers. Guardian Debt Relief can make those problems much less severe so you can focus on working on yourself. If you deal with overwhelming amounts of unsecured debt and you can’t see any relief in sight, give the debt relief experts at Guardian Debt Relief a call today. Our trained and certified experts can find solutions to your specific needs. Before you take a leap of faith with your job, take the first step and contact Guardian Debt Relief today.