Few experiences in life are more traumatic than losing your job. Your self-esteem, financial stability, and sense of security are all threatened in one devastating loss. What do you do? Here’s a plan of action to help you cope:
1. Assess your financial situation. The sudden loss of income puts people into a panicked tailspin. Sit down with your spouse and take a hard look at the bills that need to be paid. Cut out any unneeded expenses. Write down the amount of your mortgage, loan payments, utility bills and the cost of food and other necessary items.
2. Take advantage of the safety net. Immediately set up an appointment with the local unemployment bureau to begin receiving benefits. Your church might be able to help. Family members might offer to help you make the mortgage for a couple of months. Be willing to accept help.
3. Contact your creditors. The common response is to bury one’s head in the financial sand. A much better course of action is to call your creditors and let them know what’s happened. Creditors are a lot more understanding than you think. If you credit history is reasonable and you generally pay your bills on time — it makes better business sense for your creditors to give you some leeway in making payments instead of forcing you into bankruptcy. Be honest about your situation. Ask them to negotiate lower payments or defray the payments until you can get back to work. Falling behind in payments and not calling is the worse thing you can do.
4. Start looking for a job. Dust off the resume or develop your first one. Begin your job search in your area of experience since that’s where you’re most likely to find work. Contact friends and ask them for insider information on who’s hiring. Networking with others in your field can result in landing a job that never gets listed in the classified section of the newspaper. Employers aren’t going to come looking for you. Go to them.
5. Get ready for a long time on unemployment. The current job market is dismal in many sectors. You need to be self-disciplined in spending and persistent in searching for your next job.
Losing your job is a stressful experience. It helps to have a plan of action. Take one step at a time and create the most favorable outlook for surviving financially and finding your next job.
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