After having this COVID-19 shakeout, many people have lost their jobs. The organization that they were working in has also gone through some financial crises. At a time like this, where you might feel miserable and incompetent. You must look out for other opportunities and precisely do these eight things prescribed in this article to fix your situation. Amid the continuing coronavirus pandemic, jobless claims soared past a high of 3.28 million last week. In the coming weeks and months, analysts expect tens of millions more to lose their jobs. These things to do immediately after being laid off. You’ll want to take urgent steps to shore up your financial life if you lose your work or get your hours cut because of the coronavirus pandemic. We bet you’re feeling pretty crazy, afraid, or maybe a little relieved. Here are four things to do after being laid off to help you find a new job and have a little fun while you’re at it.
1. Notify the Lender and Servicer if You Have a Mortgage
Several states and the federal government have introduced initiatives to support homeowners who may suffer financial hardship during the outbreak.
For most people who plan to receive $99,000 or less in 2020 and couples filing jointly with an income of $198,000 or less, President Donald Trump moved on Sept. 1 to ban residential evictions through the remainder of 2020.
On Aug. 8, the Trump Administration also provided authority to the Centers for Disease Control Prevention Chief Robert Redfield, and Secretary of Health and Human Services Alex Azar to ‘consider’ whether any steps temporarily avoid a tenant’s eviction and is necessary to stop the spread of the coronavirus.
Reach out no matter what, O’Neill says, to your lender or servicer. Take advantage of what she terms “goodwill services” that give reprieve to Americans and are typically only placed in place during economic hardship times.
2. Have a Personal Loan in Mind
Personal loans, according to Lending Tree, range on average from $10,000 to over $20,000, with a median period of three to five years. In times of income instability, they can help out.
You’ll want to research what various lenders offer and compare interest rates and other terms of loans. It might give you more favorable terms if you already have a partnership with a bank.
If you own a home equity line of credit, you will also be able to access and borrow against your home’s value. But be mindful that if you don’t have a decent credit score, there are possible downsides to this approach, including upfront costs and potentially high interest rates.
3. Using the Product With the Lowest Rate of Interest
You will need to use a credit card if you do not qualify for a personal or home equity loan. You are using the lowest interest rate card so that you’ll pay less interest when you pay off your bill. Even a difference of a few percentage points in interest repayments will save you a lot of money. These things to do immediately after being laid off.
For a certain amount of time (typically 12 to 18 months), check for low-interest deals, whether that’s a credit card or a line of credit with a 0 percent APY.
4. Resist Payday Loans
Resist payday loans, otherwise known as cash advances, if possible. In times of intense financial duress, these loans are easy to access and can be beneficial, but they are incredibly costly. Per the Consumer Financial Security Bureau, the national average APR on a payday loan is almost 400 percent. Even a high-interest credit card (between 12 percent and 30 percent) has a much lower APR than that.
To conclude, when you get laid off, two significant steps are the major ones. First, manage your expenses, and the other is about ensuring that you still have an income.
Make a list of what you buy and pay for each month. It will help you find ways to cut back, as well as financial service providers or credit card companies that you can reach out to during your unemployment period.