Losing your job is the most devastating thing that can happen to you next to the death of a loved one or divorce. Losing a job shatters your financial world till you get another job. There are many avenues to explore to remain financially stable even if you lose your job.
The basic requirement when inflow of money stops is self discipline and planning. Controlling your finances by cutting the unnecessary parts of your daily expenditure should be your fundamental step when you lose your job. Inform your credit card companies and other creditors as soon as you lose your job. They will usually be happy that you told them well in time and will negotiate reduced payments when you don’t have a job. Here are some suggested areas where you can consider cutting expenses:
- Cable TV
- Landscaping or gardening services
- Pest Control Services
- Alarm / Security Services
- Internet (try the library or free wifi as an alternate)
- Increase car insurance deductibles
- Call your bank and creditors and ask for relief
Some experts suggest that you take two or three credit cards when you have a job and use them only when you lose your job. This is because you will not get credit card approval without a job and these unused credit card will give you credit when you are unemployed. Check all the benefits that your employer should give you before laying you off.
You are entitled to get medical benefits from your employer for the next six months or till you find another job. If you generate an income from alternative short term jobs till you find a regular job, your credit will not plummet though you are unemployed. Refinancing your mortgage or taking a home equity loan will help you get credit when you lose your job. By managing finances carefully, you can sail through the trauma of job loss in a creditworthy way.
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