How to Financially Survive a Job Loss

The first thing to realize after experiencing a job loss is that it is only a temporary situation. Your goal is to make unemployment the shortest term possible, using your cash reserves as little as possible. This will involve using your credit cards for your living expenses and making only the monthly minimum payments. Use your credit cards to get you through, remembering that is only for a short time, until you get back on your feet again when you become gainfully employed once again.

By using your credit you are protecting your cash and will allow you to make your monthly minimum payments for a longer period. This will allow you to protect your credit rating. This is only a short term solution and as soon as you're working again, pay off your credit card balances immediately.

Re-evaluate your monthly expenses and cut them to the bare bones minimum. Cancel all unnecessary expenses such as cable and other liabilities that you can live without for awhile. This will be a good time to obtain copies of your credit reports and work on improving your credit score. It has become a common practice for employers to get your credit report as part of their background check, so it is imparative to have the best credit possible.

Unexpected job loss can hit anyone, regardless of age, position and length of employment. No one is immune. Being prepared by making sure your finances are in order can help avoid unmanageable debt caused by a decrease in income and you will be less likely to just settle for any job.

In these times of uncertainty it would be wise to establish an emergency fund. Experts suggest that you should have sufficient funds set aside to cover up to six months of living expenses. To calculate this you will need to have a budget in place. It may sound like an impossible feat but start setting money aside for that proverbial rainy day.

Job loss is far easier to deal with if you are already prepared. Expect the unexpected and you will not be caught with your pants down.

If you happen to be fortunate enough to receive severance pay, hang onto it as much as you can and as stated above, live off your credit cards, cut expenses and quickly pay off your credit cards after you are employed again.

Apply for unemployment insurance immediately. The income you receive from this will tide you over and help you during this unceryain period when you are seeking employment. Do what you can to earn money. Perhaps a part time job or start a business from home that you can also work on a part time basis. This is something that you can continue to do even after you have found a new job.

If you find yourself in a position where you feel that you are unable to pay all of your bills, contact your creditors immediately. Tell them of your temporary financial situation and request information about their hardship programs where they can defer your payments or reduce them substantially. Any help would be a benefit to you.

Make sure you don't get behind on things like your housing expenses like rent, mortgage and utility bills. You do not want to compound any problems by jeopardizing your home because of unemployment.

Do not become lazy and procrastinate about your job search. Update and distribute your resume immediately and visit the various job boards such as www.hotjobs.com, www.monster.com and www.employmentguide.com. They provide valuable resources as well as specific jobs available.