Losing employment is an unpleasant event that often triggers a carousel of other problems, you don’t even know-how. The last thing you need in such a situation is the misery of money and loans. Deal with it with a cool head and avoid unnecessary stress.
Have you lost your job?
First of all, determine whether you are entitled to severance pay. An employee whose employment terminates due to organizational reasons shall be entitled to severance pay by law:
- if the employer or its part is canceled,
- if the employer or part of it moves,
- if the employee has become redundant.
Employees who are unable to carry out their work for health reasons defined by law are also entitled to severance pay.
If you have saved a reserve for unexpected expenses while you work, now is the perfect time to use it.
Hurry to the Labor Office
Your first steps should definitely lead to the Labor Office. This is important not only because of unemployment benefits to help you overcome the unpleasant period but also because of health insurance payments. These are normally paid by the employer, after the loss of employment this obligation passes to you. However, if you register with the Labor Office, the state will pay the full amount. Currently, it is 1643 USD.
The Labor Office is often referred to as a big scarecrow and unnecessary bureaucracy. Be sure not to delay his visit. Get support immediately after losing your job. You will see that every crown counts.
Adjust your spend
Loss of employment is a very common cause of financial difficulties and a debt trap. Make sure to shine a light on your family budget and adjust it so that unemployment does not put you at risk. First of all write down all your income and expenses. Remember to include payments for electronics on installments, loans or mortgages. If the amount of spending is higher, it is time to limit some. The best way to save money is to spend the rest on entertainment or food.
Beware of loans
Have you cut a significant portion of your spending, but still don’t get the family finance plan as you would imagine? Take a look at your consumer loans and mortgages. In case you do not have a reserve for at least three monthly payments, start resolving the situation and contact your creditor. Early action can postpone repayments or extend the maturity of the loan. Banks and solid non-banking companies are interested in paying you money. So they will try to meet you. Fewer and fewer creditors resort to high fines and non-compliance fees. Unexpected situations are increasingly solved by changing the payment schedule.
If you do not yet have a loan, credit card or overdraft, do not be tempted by a difficult period. You can get into debt only when you are sure that you can manage to repay. If you do not have a stable job, you have to think twice more about what you are actually borrowing. Only courses and education that can push you up the career ladder or a new car, for example, will allow you to commute to work in another city. Certainly not a good time to buy a new phone or an exotic holiday.
A career re-launch loan
Read Loan for Unemployed and find out where to get a jobless loan. Our non-bank loan comparator can also help you find the best solution for your current situation.
Be sure not to reach for another loan to solve your existing debts. It’s a quick trip to a debt trap. If you have overdue repayments of several loans over your head, consider consolidating. It’s about merging all your loans into one. This will reduce interest and make your financial situation clearer. It will not happen that you will forget the due date of some of the loans and save on fines and penalties.
If your debts are out of control and you are in danger of being executed, it is high time to consider insolvency. The so-called personal bankruptcy has very strict rules. For the next five years, you will have to come out with a subsistence minimum. On the other hand, entering insolvency will stop the execution proceedings and you have the opportunity to start solving the situation slowly.