Every week, there is a news report about some company that is laying off workers because the company cannot afford to keep them. This is adding tens of thousands of people to the ranks of the unemployed. Being unemployed is scary, especially if you have had a stable job history up until this point. Knowing some tips that can help you through the situation will ease your stress and help you focus on finding a new employer. Here are some good financial tips for the recently unemployed.
Talk To Your Creditors
One of the first things that you should do it talk to any creditors that you owe money to about the change in your financial situation. Many lenders have several programs available that will reduce or suspend your payments for a few months while you get back on your feet financially. The best time to talk to your creditors about adjustments to your payment schedule is before you begin missing payments. Explore your options before you start to panic about not being able to pay your bills.
Avoid Engaging With Predatory Lenders
Predatory lenders are always circling in the wings, waiting for a person to become so financially desperate to maintain their current lifestyle that they will overlook the fact that they are paying these lenders a ridiculous amount to borrow money. The interest rates for loans from predatory lenders can be in the triple digits, a fact that is often masked by short repayment terms and the various fees that are charged for obtaining the loan. It is best to stay away from predatory lenders altogether. Instead, you should look for ways to scale back your lifestyle so you are not spending as much. Payday loans are definitely one kind of predatory lender you want to avoid.
Search For Free Entertainment
While looking for a new job, you will also need to take time to relax and de-stress from the frustrations of not having a job. While this may have meant spending money on drinks, concerts, and movies in the past, when you do not have a job you cannot afford to spend money on entertainment. Luckily, many cities have numerous sources of free entertainment that you can take advantage of. Movies, books, and television show series can be found at your local library. In warm weather, a number of public parks screen movies and have free musical concerts for residents of the community to enjoy. Look for these free events and use them for your entertainment needs.
Join our newsletter
Subscribe to get the latest "Engineer Your Finances" content via email.