How to Survive a Layoff Financially

Gain control when confronted with a layoff.

Receiving the news of an impending layoff can lead to panic and concern. Among the many concerns rushing through your mind, surviving financially just may rank at the top. Concerns related to credit card, student loan and mortgage payments quickly turn into concerns about affording the basics, such as food, healthcare services and utilities. Learn how to survive a layoff and rest easier at night by taking the initiative to head off future problems.

Things You'll Need

• Budget

Instructions

1. Ask about a severance package. Request that your employer consider offering a severance package upon separation from the company, if it hasn't already done so. Politely state your case for receiving an additional payout. Investigate company policies and precedents concerning severance packages. Follow your instincts on this request, but, at a minimum, get information concerning the payout of unused vacation and sick days.

2. Contact your state unemployment office and apply for unemployment benefits. Provide the office with the details it needs to process your claim, such as your name, reason for unemployment, effective layoff date and the amount of any severance package. File a claim for unemployment as soon as you find out about the layoff to ensure that you receive benefits as quickly as possible.

3. Take stock of your current financial situation. Gather all your bills, loan statements and credit card statements. Put together a budget and examine your expenses in relation to the amount of your weekly unemployment benefit.

4. Contact creditors before you fall behind in payments. Ask them to work with you on any foreseeable problems. Take advantage of any credit protection plans you enrolled in. Advise them of your impending layoff and ask them to explain the benefits, such as suspended payments, available to you in your current situation. Use these benefits now or save them for future use.

5. Look for ways to save money. Cut out unnecessary purchases and expenses, such as cable TV, dining out and vacations. Opt for low-cost outings such as a day at a local park or camping out. Cut coupons and take the time to study store circulars to capitalize on sales and discounts. Stock up when you can on items used regularly, such as health and beauty products and canned goods. Use local resources, including food pantries and utility assistance programs, if necessary.

References

• Washington Post: How to Survive a Layoff: Negotiate a Severance Package
• The Atlantic: How to Survive a Layoff