AICCCA Suggests Survival Tips for the Underemployed

Fairfax, VA - October 8, 2003 -In July 2003 the underemployment rate in the United States was 10.2 percent up from 6.8 percent in January 2000. In addition, 1.1 million jobs have been lost since the economic recovery began in November 2001 the worst employment loss during a recovery since 1939 reports Economic Policy Institute. The economic picture these statistics paint is one of financial hardship for many of the Americans that are affected by underemployment.

"Many families have gone through their savings and retirements while searching for a job and are in a very vulnerable financial state," said Dave Jones, president, Association of Independent Consumer Credit Counseling Agencies. "Those that have found jobs and are underemployed may still face financial difficulties even though they have found employment."

AICCCA offers these survival tips for those who are underemployed.

• Don't use credit to extend your income. Because we are in a jobless recovery, it may take some time for you to regain your previous earning power. The Economic Policy Institute reports that over the past year real wages have been falling about 1 percent for low- and high-wage workers and wages have been stagnant for others. Using credit to make up an income shortfall during underemployment will only make matters worse. A much better solution is to bring expenses into line with your current income.
  
  
• Review expenses and determine where changes need to be made. Some areas to consider when reducing expenses are entertainment, food, utilities, transportation and housing. You may need to sell a second vehicle or consider moving to less expensive housing to make ends meet on your current income. Though these changes are not easy, you will find it is much less stressful to live within your current means.
  
  
• Keep your creditors informed. Don't wait until you are late with a payment. Contact your creditors right away and let them know your situation and attempt to work out a payment plan. Most creditors are willing to help when contacted by consumers who are willing to pay their obligations.
  
  
• Make the most of your current employment situation. If you are in a new industry, learn as much as you can and apply your knowledge and skills to move up quickly. Specific job skills that may not apply to your current situation can still be helpful when you draw on past work experiences. Look for ways to capitalize on your work experience and skill level with your new employer.
  
  
• Continue to search for employment that utilizes your education and skills. Don't give up on finding an opening in your chosen field. Send out your resume and network. You never know when you might be in the right place at the right time.