How to Cope With Debt When You Are Laid Off

Strategy is key when you are laid off from your job. You have to figure out ways to pay your bills since you will no longer receive regular paychecks. Sadly, some of your debts may become delinquent as you struggle to pay bills from available funds -- from savings, a severance package, investments or proceeds from selling personal property. Yet, if you make wise decisions with the money you do have, you'll be doing the best you can in your situation.

Instructions

1

Calculate how much money you have available. Look at your savings account balance, severance pay, investments you can cash in, and possessions you can sell for a profit. Record the amount in a safe place.

2

Get rid of any non-essential services, such as cable or satellite television and movie rental or health club memberships. Look for ways to trim your monthly expenditures so you can conserve money.

3

Allot your funds to pay your living expenses first -- food, utilities, mortgage or rent -- to secure those basic necessities. Use part of the remaining funds -- if any -- to make payments on secured loans -- such as a vehicle loan. If you don't make the payment, the car will eventually be repossessed by the lender. You can call the lender and request a deferment of your payment if necessary.

4

Pay only the minimum amounts on your unsecured debt, such as credit card accounts. This is not the time to try to pay extra on your debt. If you can't pay the minimum amounts, call your creditors and request assistance. Creditors will sometimes reduce your payment or work out some other reasonable plan with you if you are experiencing hardship.

5

Monitor your funds to make sure you know how long they will last without income from a job. Consider taking on two part-time jobs or a job that pays a salary less than what you were making, just to receive some income to help pay bills.