Job Loss: What To Do First

It’s day one after you’ve lost your job. What are you doing right now? You may be working through the help wanted ads and wondering about how to get into an interview quickly. These are good things, but you also need to take care of your finances immediately. The day you stop earning money is the day you need to stop spending it. That can seem difficult to do especially since you are now an unemployed mortgage borrower.

Here’s what you should be doing right away without any delay to ensure you are preserving your money. Put everything else second until these steps are taken care of first.

Secure Unemployment Right Away

Many people who lose a job qualify for unemployment benefits. These are funds paid to you by the government if you have lost your job through no fault of your own. It’s important to recognize that not everyone qualifies for it. Most of the time, those who lose their job for things like failure to show up for work or violating company policy do not qualify.

Unemployment Benefits Paid in 2018

Many people who lose a job qualify for unemployment benefits. These are funds paid to you by the government if you have lost your job through no fault of your own. It’s important to recognize that not everyone qualifies for it. Most of the time, those who lose their job for things like failure to show up for work or violating company policy do not qualify.

Let’s say you do. You should file for unemployment compensation immediately then. Be sure to describe your situation at length – lost job mortgage borrower who is actively trying to find work. A key component of unemployment is that you should tell the agency you are working hard to find a new job.

Talk to a licensed HomeGo agent today.

Figure Out Your Health Insurance

You do not want to be stuck with thousands of dollars in health insurance costs if you have an injury. That means you should do whatever you can to protect your health insurance. There are several things to do here.

First, recognize that your current health insurance plan should last at least a month. This depends on the overall plan and the time of the month that you lost your job. During this time, you have to take action because being even a few days without health insurance makes it much more expensive for you to obtain later.

Next, talk to your human resource department at your previous job. A program called COBRA may help you. It is not free access to insurance, but it does give you access to the current policy you have for a set number of weeks or months. You may have to pay out of pocket for this health insurance. However, it tends to be less expensive than purchasing a policy outright.

Finally, if you run out of time with COBRA, you’ll need to consider the Health Insurance Marketplace. This could be an option for those who have the financial means to continue to obtain health insurance through a policy you pay for out of pocket.

Get Caught Up Financially and Know Where You Are

With job loss, mortgage payments tend to be top of the mind first because they are usually the most expensive of all debts you have to pay each month. However, it is important for you to get all of your financial information up to date. Here’s where to start.

Create a sheet with all of your debts on them. This includes everything such as credit card bills, personal loans, car loans, and your mortgage loan. Be sure it lists how much you owe each month as well as the due date.

Make payments to secured assets first – those like your home and car that you know you need to maintain.

Consider if your loans fit your needs right now. For example, if you have more than one vehicle with a loan, now may be a good time for you to sell one to get out from under the debt. This can free up some of the money you have to pay out each month.

Cut Unnecessary Spending

When you are an unemployed mortgage holder, and you need to conserve funds to maintain those payments, you need to get rid of just about everything else:

Preserving your current funds is a very important step in ensuring you can keep making payments to your lender. However, with job loss, mortgage borrowers may need even more support. As you look for a job, be sure to consider your long-term needs here.

Enter into payment agreements with your utility companies.

Contact your cable and cell providers to look for savings options and ways to trim what you owe.

Cut out unnecessary spending such as on Netflix accounts.

Don’t eat out, and trim back the cost of groceries.

Cut back on purchases of items you don’t need such as clothing or entertainment.

HomeGo Can Help.

For many people, selling their house in as is condition is the simplest, most straightforward solution to job loss.

HomeGo is the nation’s largest home buying company, and we’re bringing professional experience, transparency, and assurance to homeowners who want an easier way to sell.

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Check out more of our information on job loss.

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