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What To Do If You Are Laid Off?

unemployed-coronavirus

Unfortunately, there have been mass furloughs and layoffs over the past 30-60 days due to the COVID-19 pandemic. Many people are out of work and do not know when they are going to go back to work. If you have recently been laid off, there are a few steps I would recommend for you to take. I hope you are able to find another job quickly and I hope with COVID-19 pandemic goes away at some point in the near future. Please reach out in the comments section if you have any questions.

 

Losing your job is very stressful and that is under normal circumstances. However, losing your job during this time with a likely long recession can be very difficult. While you may feel overwhelmed, there are steps that you can take to help improve your situation.

 

Apply for unemployment benefits immediately: Almost all states offer unemployment benefits and you can file online. Check your individual state’s website for additional detail, but many have streamlined the process to make it as efficiently as possible. Also, the recently enacted CARES act, adds weekly unemployment benefits with an additional $600 per week, which is great news. This is by and far the most important step and the first thing you should do.

 

Contact your financial institutions: The next item you need to focus is on your spending. You should contact any company that you pay regularly and see what they are willing to do to waive and reduce payments for the foreseeable future. Be as proactive as you can and always ask for help. Many banks are deferring payments on personal, auto, and home loans to help individuals during this time. Credit card companies are also waiving interest for those who were laid off or are sick. Delaying these payments will help you with your cashflow while you are laid off.

 

Cut spending where possible: If you are laid off and do not have sufficient savings, you need to cut out any nonessential spending for the time being. This can include gym memberships (you probably cannot go to the gym anyway), TV services, and really any expenses that are not essential to living. This will be difficult, but this step could be the difference between making it through until you get another job.

 

Reach out to friends, family, and the community for help: This is an unprecedented time, and many people are suffering. There are many people, organizations, and communities that are offering help for people in need. This includes food drives, meal programs, as well as free professional services, such as personal finance services.

 

Apply for short-term help: If you are in desperate need of financing and the unemployment benefits are not enough, there are emergency loans available to help you make it through for a short period of time. These loans are not a huge amount, but they could help you for 60-90 days.

 

Focus on the future: I would recommend to not focus on the past, but be proactive on the future. Build a job search to do list, and reach out to business associates, friends, family, and whoever you think could help you get another job. The more proactive you are, the higher chance you will be able to get another job.

 

Begin to network virtually: While you are likely unable to network in person, there are tools you can use to network online. This can be setting up Zoom or Skype chats, or join a number of online webinars, virtual job fairs, or professional organization to help you connect for another job.

 

Stay positive: I know how hard of a situation this is. It may be the most difficult problem you have encountered in your life. I would recommend to stay as positive as possible and you will be able to get through this difficult time. Please reach out to friends and family if you are feeling down and they can help you through this difficult time.

 

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Comments 1

Wanderer on Sunday, 03 May 2020 02:55

There is an added item that was written up a few days ago in the credit circles. The item has to do with the lender forgiving payments for a couple of month (or a longer time). It has been reported that even though a lender offered and gave a period of non payment grace. Their credit reporting functions internally may still report to the credit bureaus as "late". Late payments can hit a credit report with a very hard score drop and it stays on the record for seven years.

One needs to be aware it is a possibility and to try to find out how the lender will report. It is one of those operational items that can be overlooked so keep an eye peeled for this activity.

There is an added item that was written up a few days ago in the credit circles. The item has to do with the lender forgiving payments for a couple of month (or a longer time). It has been reported that even though a lender offered and gave a period of non payment grace. Their credit reporting functions internally may still report to the credit bureaus as "late". Late payments can hit a credit report with a very hard score drop and it stays on the record for seven years. One needs to be aware it is a possibility and to try to find out how the lender will report. It is one of those operational items that can be overlooked so keep an eye peeled for this activity.
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Thursday, 13 August 2020

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