Is there a chance I can still get laid off this year?
There is a chance you can get laid off any year, but you still have a chance you'll get laid off this year especially. With July's unemployment at a high of 9.4% and the economists predicting it will continue to get higher until sometime next year, you may still lose your job.
You need to prepare to protect your family so that you can still pay your bills while you apply for a new job. Because of increasing unemployment finding a new job might be a pretty hard task. That is why it is imperative that you build an emergency fund that can cover your household expenses for at least eight months. You probably won't be able to save that over night, but the sooner you get started the better. Check out our tips on how to cut back and help you save to build your emergency fund.
If you are counting on living on your credit cards or a home equity loan you might think again after reading about what's happened with those credit options these days. In case you haven't heard banks are not in the lending mood lately.
You might even want to start job hunting right now while you are currently employed so you have an idea what job options are out there. You never know you might find something that pays more. Network as much as you can and check job postings in your field. If you come across something that you are not up on get schooled in it right away. In down economy employers aren't looking for employees that meet only part of their requirements. There is likely a large pool that they can choose from with plenty of qualified people who meet all of their requirements. Do everything you can to make sure your a top candidate.
I am not worried. Even if I get laid off I'll still get unemployment right?
Probably, but it won't be for the full amount you were once paid. You will still need something to supplement your income with and that will probably be your savings. The hard truth is maximum unemployment benefits are usually 50% of your former wages. Also, you only get those benefits for a limited time. Usually, you can only receive unemployment for 26 weeks. In economic times like we are having now Congress can vote to extend unemployment benefits for an additional 13 weeks. Based on standards set by federal law, unemployment is handled by your state.
Check out the link "Find Unemployment Insurance Filing Assistance" at servicelocator.org to find your state's rules.
Can't I just use my credit cards or get a Home Equity Loan to live on if I lose my job?
You must start putting money aside in a savings account or mutual fund. The credit that people have been relying on for years is not that easy to obtain right now. If you don't have the credit available or the bank reduces your limits because their nervous that you are all of sudden charging or taking cash advances you could be without a way to pay your bills.
If you are thinking you may lose your job. I guarantee someone else is thinking it too. Probably your bank. Remember bank are way ahead of you. They know if you lose your job you will go right for your credit cards for cash to pay your bills. Not having a job increases the chances you won't be able to keep up with the payments on that money you cash advanced. With the banks already in bad shape they will begin to cut back on what you borrower if you make them nervous in any way. Credit lines are being reduced all the time. I hear the same story every day. The bank lowered my limit or the bank closed my credit card.
If your credit lines haven't change yet, don't think you are out of the woods because you have a great credit score and credit history. Soon as you start running up balances on your credit cards you are going to send up a red flag with your bank. You could be waving your credit lines good-bye. The will be gone just when you need them most. The best thing to do is start putting money aside for an emergency.
No comments:
Post a Comment