I've Lost My Job …Now What?
Losing your job can be tough, but you can soften the financial blow by following these tips.
In today's changing economy, job loss can happen to anyone. While your job situation may be beyond your control, you can take action to reduce the financial pain of a job loss. Here are some tips to help you protect your finances and get through a job loss.
Size up Your Situation. Find out how much you own, how much you make, how much you owe, and how much you spend. Ask yourself these questions:
· What are some unimportant things that I could cut back on or get rid of?
· What are some things I could sell for extra money?
· Would a part-time job help?
· Could I consolidate my debts to save money?
· Could I refinance my home to save money?
· What are some other ways that I could increase my income and cut costs?
Talk to Your Creditors. If you think you may fall behind on your bills, and as soon as you lose your job, or think that you might, talk to your creditors. Your creditors want to help you protect your credit and work with you to help you keep up with your bills, but only if you talk to them right away. The longer you wait to talk to your creditors, the fewer options you have for protecting your credit.
Prioritize Your Bills. Food, clothing, shelter, and medical care are your most important bills. Paying for those things is the most important. Some bills may need to be paid right away; others may be able to wait. Some bills may need to be paid in full; others may not need to be paid in full.
Get Your Debt Under Control. Debt consolidation may be able to help you lower your total debt payments and free up extra money. At the same time, it's important to avoid taking on any more debt if possible.
For more information about debt consolidation, visit our Debt Consolidation page.
Get Help. Financial counseling can help you both now and in the future. Financial counseling can help you work with your creditors, make a budget and follow it, and find out about any special programs that you may be eligible for.
Look into credit insurance. If you feel that your job may be in jeopardy, look into credit insurance. Credit insurance, or Optional Income Protection, may be able to make your payments for you if you are involuntarily out of work.
Protect Yourself. Make sure that you get any promises or details about any financial transactions in writing, read everything carefully before you sign it, and ask a legal or financial expert to help you understand anything that isn't clear. Avoid signing anything that you don't understand or that seems too good to be true or too easy to do.
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These are general recommendations not applicable to all financial situations. Every financial situation is unique. Further, the suggestions and recommendations contained within the content provided are not an assurance of any future result. Be sure to discuss your specific financial circumstances with a legal or financial expert before you take action. Contact us for more information.
