If you’ve been recently been laid off, you know you’re not alone.
Millions of Americans are in the same situation with the recent pandemic. It has been unprecedented.
While this is a scary time, because so many people are going through the same situation, concessions have been made, making it a little bit easier to figure out how to financially handle a layoff.
If you’re recently laid off, consider taking these steps.
How To Handle A Layoff
In general, when you’re laid off, you lose health insurance.
Considering the current pandemic, now is not the time to be without health insurance. If you have children, consider applying for their insurance through your state.
If you’re a Christian family, consider applying to one of the Christian based health programs.
Apply For Unemployment
Immediately apply for unemployment benefits.
Thanks to the new relief package just implemented, you’ll get the regular weekly state benefits, and on top of that, you’ll get an additional $600 a week through the end of July from the federal government. There is also a stimulus check of $1,200 for each adult, and $500 for each child, so make sure to take advantage of that.
As millions of people are also unexpectedly unemployed, prepare for a long wait applying for the benefits. That’s why it’s important to get started as soon as possible. Just be patient because you’re one of many applying.
Conserve Your Cash
If you have an emergency fund, conserve it.
You don’t know how long this current situation will last or when you will be employed again.
Rather than spend your emergency fund paying your regular monthly bills, first contact the companies you owe and see if they have plans in place for the millions who are currently unemployed.
Notify Those You Owe
While you might like to just avoid the whole situation, the best thing you can do is to notify those companies that you owe. Many will be willing to work with you.
At any time when you lose your job, contacting your mortgage company is smart because they would rather work with you than have you face a foreclosure. Now, with our current circumstances, even more mortgage companies are working with the unemployed. Some banks are allowing those who are affected to put their mortgages on forbearance for up to a year with no penalties. Other banks are allowing this on a month-by-month basis.
Credit Card Companies
If you owe money on a credit card, call as soon as you lose your job. Many companies are allowing customers to delay a payment or making some other arrangement. Each company differs, so you have to call and work with each of your creditors separately.
Put Student Loans On Forbearance
Thanks to this current crisis, President Trump has asked student loan companies to allow affected individuals to temporarily pause their student loan payments for up to six months, through September 30th. Take advantage of any loan forgiveness programs that you can.
Student loan providers will have more details as they implement the changes, so contact them as soon as you’re laid off.
Access Free Food
If you’re laid off and money is tight, there is absolutely no shame in asking for help.
Currently, in most areas, school-aged children can pick up breakfast and lunch once per day at their local school district. There is no income requirement, and the child does not have to attend the school. Generally, the requirement is that you must have the child in the car with you, so if you want meals for all four of your children, all four children must be in the car.
In addition, adults can find food at local food banks.
Times Are Unsure, But They Will Get Better
We’re living in scary, unprecedented times. However, because we’re all going through this as a country, as a world, the U.S. government is putting security nets in place.
While being unemployed is nerve-wracking, take the time to take the proper steps, and you’ll be able to make your way through this crisis without a personal financial collapse.