Companies trying to make it through tough economic times sometimes cut jobs.
If you think a pink slip may be on its way, there are things you can do while you still have a job and within the first few days of a layoff or cutback to make a period of unemployment more manageable.
If you're still working, beef up your emergency fund so that it carries you through several months of missed paychecks. Pay off debt, if possible.
If you lose your job and you can see that your resources will not be enough to cover all your essential expenses, you need to set priorities.
- Keeping up with your rent or mortgage payments should be your top priority.
- Car payments, basic utilities, food, and essential insurance coverage come next.
- Make at least the minimum monthly payments on credit cards, if possible.
- Contact your creditors right away to let them know what has happened. The worst thing you can do is cut off contact or avoid phone calls. Many creditors have established procedures to help you avoid collection action during tough economic times.
Because laid-off workers often are cut off from company computers immediately, keep your address books and personal files at home. You'll want to be able to contact former colleagues when you begin looking for a new job.
As soon as you get laid off, file for unemployment benefits; it can take a few weeks before your first check arrives. Call or stop by the credit union for your direct deposit information so that you don't have to wait for checks in the mail or risk theft of checks.
Review your severance or separation package, making sure you understand what's being offered and what paperwork you might have to fill out. You also should determine if you believe the package is fair and gauge if there's room for negotiation.
While you may not have control over what happens to your job, you do have control over how you prepare for and manage a layoff or cutback.
If you think you might be facing a layoff or cutback, talk to a professional at Coosa Pines FCU. We will examine your unique situation to determine how we may be able to help keep your finances in order during this difficult time. Stop by or contact us today.
