Four Things to Do As Soon As You Lose Your Job
Aug 21st, 2009 by D.J. Rausa
The unemployment rate for California was one of the highest in the nation, and the highest in our history last month. Many of the people who come into our offices have been laid off from their jobs in the San Diego area, and they’ve fallen behind on their credit card bills, car payments and mortgage payments. We are seeing many new clients who have never been in trouble with debt before who just can’t keep up.
If you’re on unemployment in San Diego and facing bills you can’t pay, you can be proactive about your finances to avoid the last-minute emergencies and scrambling that many of our clients face. Here are a few tips for how to take control when you lose your job:
- Take stock of your bills.
Sadly, many of the people who come to us seeking relief for their debt problems haven’t sat down to review their financial situation. Gather up all your paperwork and write down your sources of income and your monthly financial commitment to creditors. Seeing everything in one place can help you get a clear picture of where you are. Call our office and request a Free Bankruptcy Document Organizer! - Review your finances with your partner.
We often see couples who come in together but who have not yet discussed the state of their finances. One spouse knows how bad things are, and the other one has been in the dark. Our office can help spouses communicate with each other and share information about debt, thus making their recovery easier. - Talk to an expert.
The worst thing you can do is to sit back and wait for the creditor calls to start. Bankruptcy offices may offer free consultations to help you understand your options, and you should schedule a meeting as soon as possible when you start to feel pressure about paying your bills. Don’t wait! Frequently our office can move quickly to stop the calls and put your mind at ease, but you need to schedule the appointment to get the ball rolling. - Write down your questions and think about what you want to accomplish.
Many of our clients feel lost, frustrated, stressed and overwhelmed about their debt. They simply want the problem to go away, and they haven’t thought about how they want the problem to go away. Do you want to keep your house? Is your goal to reorganize your debt into manageable payments? Write down the questions you have about your challenges, as well as your overall goal. Bring those to the expert and talk to your partner.
All good points, especially the aspect of reviewing your financial expenditures. Rather than waiting until the savings are gone, immediately cut out the discretionary spending. Spend on just what you need. You can often lower your expenses by 30%. When the next job comes in, then it’s time to celebrate, and resume your life to the fullest!