I recently, and unexpectedly, lost my job. Because I had summers off (no paychecks either), I've been using my credit cards for most purchases, saving what cash I had saved from the previous year to pay bills (rent/car/etc.).
I am in the middle of interviewing for several positions, and expect to have a job within 30 days. My question is: what to do until then?
My monthly expenses (including credit card minimum payments) are about $3500. Seeing as my credit cards don't have that much room on them, and my bank account is painfully empty, I am left with what feels like the following two options:
- Take out a new credit card.
- Ask the bank for a loan.
Now I have no idea how loans work, and am not even sure I could take out a loan so small. But that certainly seems preferable to opening my third credit card, and the high interest rates that entails. So I have several related questions:
- Are these my only two options?
- What is my best course of action, trying to minimize future debt?
- Assuming I receive this $3500, am I better off using the bulk to pay off my credit cards, or should I keep as much cash available as I can?
EDIT: Just a few details I thought might be pertinent:
My credit is very good. I've never missed a payment on my credit card or any bills. The last time I checked (roughly 18 months ago), my credit score was a 710 out of 790.
The $3500 in expenses covers both items I can use credit or cash for (e.g., groceries), and items I can only use cash for (rent). The split between "cash only" and "either" is approximately 50/50.