Ways to Avert a Financial Meltdown When You Lose Your Job

Getting the devastating news that you are losing your job is never easy. The bills keep coming whether you have a job or not. There's rent to be paid and groceries to feed the family. The first thing to remember is not to panic. There are some smart ways to cope with losing a job that will keep your heart rate down and the family off the street while you look for that next career opportunity.

Apply for Unemployment Insurance Benefits

The Labor Department can be your best friend when you lose a job. Checking out the website of your State's Labor Department or visiting their office is the first thing you need to do to get the checks coming as soon as possible. Companies actually pay into this fund as a mandatory expense designed to protect workers when they are laid off. You owe this money, but you must apply for it to get it.

Make a New Budget

Calculate the money you have in savings and the unemployment funds you are awarded. Then add up your monthly bills, leaving out all unnecessary purchases. Necessities are the only bills you should consider paying.

Turning off cable and other luxury items should be a top priority. Staying away from the mall and other places where it is easy to spend money is also an effective way to keep your cash in hand. Eat at home and stretch your food dollars.

Downgrading your cell phone coverage is another option that some people find painful. When the goal is to make it through a challenging financial period, it is easy to put things into perspective. Paying for the most basic cell phone coverage still gives you the ability to call without all the bells and whistles.

Borrow Money if Necessary

Keeping a roof over your head and the utilities on is not something to be taken lightly. Borrow money if you have to in order to keep your home base safe and secure. Even if you don't have rich relatives, you can still borrow money from several sources. Life insurance policies often have a cash value associated with them that can be withdrawn. The older the policy, the more likely there will be an accessible cash amount.

You can often borrow using your car as a collateral. This type of loan is called a title loan and does not require excellent credit since it is based on the car's value. The reason this is a popular loan is because you can obtain cash within a couple of days with few strings attached. You can even drive your car while you are paying off the loan. TitleMax is a reputable source for a car title loan. 

Summary

Losing a job can be challenging. It is critical that you immediately apply for unemployment insurance and make a new budget, restricting spending for anything but absolute necessities. Borrowing is also an option if you need the money to keep the rent paid or groceries on the table.

Author Bio:
Belinda Collins is a financial writer and has published hundreds of articles on personal finance and business.