Getting terminated anywhere is not good news but in this situation, there are things that you can do to make it less dire.
1. Consult Your Bank
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Be prepared to block your account if you have any outstanding debt. Your previous salary will be onsidered final for the payment and end of service benefit by the employer. You don’t want to get caught without any access to funds or direct debits and orders being declined. Consult with your bank before time and make sure they explain you the process of getting the offer letter and certificate of salary from your new organization to avoid freezing of accounts.
2. Take Stock
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Make your budget wisely because you are in a situation where you have no monthly income. Make a spreadsheet listing expenses or install handy money apps into your phone which allows you to have an eye 24/7 on your spending.
3. Avoid More Debt
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Borrowing cash is tempting in the hour of need, however it is not preferable because one can spiral deeper & faster into debt if you are out of the job. Credit cards are the option many turn for but if unable to pay every month, it also becomes another way of getting further into debt. Many people consider it as their last resort but they will worsen the situation because its debt comes with a high interest cost. So it’s not a good idea to go on a credit for a lifestyle you used to have when employed.
4. Prioritize Your Bills
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It’s not good to let the bills go unpaid but prioritizing them is an option when in a money crunch. In order to have the ability to take credit or loan in future, Credit Bureau take into account all the individuals report, if you incur missed bills and payments. It is advisable to look for repayment strategies which include debt stacking- paying high amount of loan first to lose the debt quicker. Figure out other strategies which works best for you with the money you have.
5. Look For A New Job But Avoid Quick Fixes
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If you don’t have any idea of how you’ll make your next payment for rent or mortgage, then you need to get a job straight away. But don’t take anything that is available. Consider temporary employment or freelance work to keep you floating at the time of financial crisis.
6. Keep A Bit Of Cash Aside
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For unforeseen financial conditions, savings are a timely back up plan like a job loss. Put aside some spare money each month in a savings account to use when you really need them.
7. Job Loss Insurance
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Job loss cover is not offered to every borrower and also not for every kind of loan. To be eligible to claim the benefits, the loss has to be involuntary. The letter of termination needs to be produced along with other documents. Read all the terms and conditions to be aware of any exclusions. Plan for uncertain circumstances when you apply for a personal loan or a credit card. A premium is attached to such types of coverage, so having an option to manage all your debts will make a huge difference when faced with a job loss.
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