As banks continue to tighten their hold on loans even to healthy businesses, waves of lay offs are rolling out with many more to follow.
How to survive when you’re laid off? Smart Money has some smart tips.
DO
- Negotiate: While not required to do so by law, many employers offer laid-off employees severance packages
- File for unemployment benefits promptly: Even while receiving a severance package from your employer, you’re entitled to unemployment benefits
- Assess health-insurance options: If you can’t join your spouse’s employer-sponsored health plan, consider either extending your previous coverage through COBRA or buying an individual policy.
DON’T
- Tap into your 401(k): tapping into the retirement account should always be your last resort
- Rely heavily on a HELOC: with banks being cautious, don’t build your expectations on this
- Overuse your credit cards: Interest rates alone should be enough to keep people from using their credit cards too much.
I find some of the do not’s a bit too white collar, too well off-ish tips. The general principle applies though. When the going gets though and you don’t have enough money to fall back on, try to avoid bridging that gap being borrowing money. Stay away from credit cards and payday loans.
Free Money Finance has some additional tips that I find very useful in a practical sense.
- I’d immediately ramp up side-income opportunities and additional ways to make more money.
- I’d start to network and look for a job asap.
- I would likely consider becoming self-employed and/or combining a few ideas together to make a good income.
Laid Off? Here’s How to Stay Afloat
What to Do If You’re Laid Off
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