Solutions to Help with Job Loss
A big factor that can negatively impact a person’s finances is job loss. We see that often happens with either an economic downturn or perhaps due to a medical condition. Over the past year, many Canadians have also experienced job loss due to the COVID-19 pandemic. In any event, for any household that suddenly loses over half its income, it’s very difficult to manage debts.
Losing your job is a stressful experience, and is not a situation anyone chooses to be in. Thankfully, there are steps you can take to get back on track and avoid more debt. If you have recently lost your job, here are some things to consider:
Create a plan and adjust your budget
Identify which expenses you must pay (car payments, mortgage, etc.) and which optional expenses you can cut back on (online shopping, cable, etc.). If you don’t already have a budget, now is a good time to begin. The most important thing is to plan and prioritize your spending.
Find out what income and benefits are available to you
If you’ve been laid off, you may qualify to receive a severance package or unemployment insurance. You might also pick up odd jobs or a part-time gig while you’re in between jobs. Knowing how much income you will receive from all sources and when – will help you plan your spending.
Manage your existing debt and avoid taking on any new debt
There are several options available if you’re struggling to make minimum payments. You might consider debt consolidation or refinancing your mortgage. You might also consider reaching out to your credit card company. Many have programs to help customers who are experiencing financial struggles.
Consider seeking professional advice
One of the best ways to navigate the financial challenges associated with job loss is to speak to a professional credit counsellor. At Derek L. Chase & Associates, we care and are here to provide advice and assistance no matter what financial situation you find yourself in. There are federal government-approved options available to help you manage your debt.