How to Handle Bills When Laid Off
The unemployment rate stood at 9.6 percent in August of 2010, unchanged from the month before, according to the Bureau of Labor Statistics. In such an economic climate, one should be prepared for the worst before it happens. Handling bills after you've been laid off can be stressful. However, with a little careful planning you can weather the difficulties.
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Instructions
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Take stock of your finances. Decide what you must spend money on and what you want to spend money on. Prioritize bills based on necessity --- for example, putting rent and food first.
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Create an emergency fund. You can raise funds for this by selling things around the house or socking away any money left after bills have been paid. Access this money only after you have run out of severance funds or unemployment benefits.
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Negotiate with your credit card company about payments. Some credit card companies have forbearance programs, typically lasting between three and six months. Talk to your credit card company about programs for people who have fallen on hard times.
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Pay only the minimum on debts. This will ensure that you don't get any further behind than you already are while also keeping your expenditures as low as possible.
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Keep in contact with your creditors when you get behind. Even if you can't pay the full amount on your bills the people you owe money to may be willing to allow you to pay partial amounts until you get back on your feet.
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Look into Low Income Home Energy Assistance Program (LIHEAP), a federal block grant available in all 50 states to help the poorest Americans keep their utilities on during hard times. While the money is provided by the federal government, it is administered by states. Application procedures vary from one state to another, as do requirements.
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References
- Bureau of Labor Statistics: Employment Situation Summary
- Frugal Dad: How to Survive a Layoff
- "Washington Post": Take Stock of Your Finances
- Credit Cards.com: Laid Off and In Debt: 5 Steps to Take Now
- United States Department of Health and Human Services: Low Income Home Energy Assistance Program: Fact Sheet
