As a result of the coronavirus pandemic, unfortunately, many Americans have lost jobs. That can be one of the most stressful events in life.
Will unemployment and savings be enough to cover bills? How long will you be out of work?
There’s no denying the impact on the entire household. But there are steps you can take to help get you through:
Take Advantage of Employer Benefits These might include:
Health insurance (Most often you will have to pay for health insurance yourself through COBRA or outside providers, like the Affordable Care Act.)
Assistance with finding another job.
Apply for unemployment File for unemployment right away, even if you are receiving severance now. You won’t be able to collect both at the same time. But because it often takes a while to start getting unemployment, you’ll want to start the process. You have been paying into this benefit, and you’re entitled to it. Where: on your state’s Labor Department website.
Take a look at your budget Look for any expense you can cut immediately:
You’ll quickly realize that you can survive without those 10 streaming services you’ve been subscribing to.
Go back through several months of bank and credit card statements to get a clear picture of where you’re spending. That will help you make a budget that fits within any payments you’re receiving.
Contact your creditors Don’t ignore bills. Call businesses you owe money to and ask about adjusting payments. Especially in this coronavirus era, many companies have programs to help you, including deferring payments.
Use your emergency fund Now may be the time to use that emergency fund if you need to. You can replenish it once you're back on your feet.
Consult your financial adviser It may be tempting to dip into your retirement savings, but you’ll want to talk to a professional first. You might have to pay taxes and fees on that. It might be better to find other sources of money before tapping your retirement fund.
Consider a side gig while looking for your next job While many industries have had cuts, others are thriving. They include delivery services and essential retailers like grocery and big box stores. Many are actually looking to add people.
It can be quite a shock to lose a job, so give yourself a bit of time to adjust but not too much time. By setting a job-hunting routine and taking the above steps, you’ll have a sense of accomplishment, which may relieve some stress.
You’re not alone, and many companies like GM Financial have sites that have helpful financial information. KEYS® by GM Financial has many articles on subjects from Achieving Your Financial Goals to Rebuilding Your Financial Stability.
We hope the information you find there will be helpful to you now.
By Julie Powell, GM Financial