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Don't Panic! Make a Plan!
Job loss can be one of the most difficult of life's challenges. Practically all of us plan and build our lives around our income. We need the constant influx of cash to keep everything going. When that cash-flow reduces or stops it does not take long for things to start to unravel.
When job loss happens, the first thing to do is make a plan. It is all well and good to presume that you will get another job right away, but it does not always happen.
Reducing expenses and careful budgeting should allow you to weather the storm if you take action as soon as the job loss happens.
Avoid making up the cash-flow shortfall with credit. When an employment interruption happens we can't carry on as if nothing has happened. Continuing to use credit with less or no money coming in to service the debt will result in a big problem in short order.
I see people all the time in our Brampton office who have been maintaining their fully employed lifestyle while unemployed by using credit. All too often the amount of debt generated during the period of unemployment is too great to be paid off even when they get back to work.
No one plans to loose their job, but a little forethought can go a long way to reducing the stress of an interruption of income. Put a little of your income away every pay and build a reserve fund for emergencies. It does not really matter how much as long as you do it with every pay, put the money in a separate savings account and forget about it. You will be surprised how quickly it builds up to a very useful cushion that will give you a bit of breathing room when something happens to your income.
If you have suffered a job loss and have accumulated debts that are causing you trouble call 310-PLAN to talk to a trustee about your options today. We can help you make a plan to get you back on track.
posted by Brian McIlmoyle @ 10:03 AM
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