What Should You Do If You Lose Your Job Because Of Coronavirus?
The global pandemic has had disastrous effects on the lives of millions. Its main consequence has been the loss of jobs. Unemployment in the US is now topping 30 million. If you’ve found yourself in this position, remember that you’re not alone. To help make your situation better, here are some important steps you can take.
Breathe And Relax
It’s a natural reaction to panic when you lose a job, especially in the current economic climate. You desire to be productive, and there’s also the financial necessity for most of us to receive a regular income. The uncertainty of not working only adds to the stress. However, the first step you must take is to remain calm and consider your next move.
Take deep breaths, relax, and regain the confidence to move on and find new employment. You must persevere and believe in yourself to turn things around.
Focus On Family Time
A consequence of job loss or simply having to quarantine due to coronavirus is spending more time with family. You no longer spend all day at the office. The new arrangements may take some adjusting to.
Use this opportunity to consider what activities you’d like to do together and what topics you would like to talk about. Every household prefers different things, so make your schedule unique to you and your family. Consider a joint project or schedule fun games for certain nights.
Get Involved In The Community
The loss of a job doesn’t have to prevent you from leaving your house. Should you possess the time and inclination, become an active member of your local community. This presents opportunities for income and could improve both your physical and mental health.
For example, you could work as a delivery driver. Many pharmacies and grocery stores are hiring solely for this purpose. By visiting local websites, you’ll also find volunteer opportunities such as delivering meals to the elderly. Additionally, you can offer support over the phone or online to those that need it.
Get Finances In Order
However long your unemployment lasts, it presents an opportunity to review spending habits and work on your personal financial strength. Consider changes and simplify your accounts. Examine whether you can pay off debt, make savings by reducing expenses, build an emergency fund, or invest savings.
Without a regular income, you can reduce your monthly expenses by canceling unused subscriptions, eating at home more, avoiding non-essential large purchases, and lowering bills by switching providers. You can limit overspending by arranging an automatic regular transfer from your bank account to a savings account. Doing so removes the temptation of spending money that sits in your account.
If you’re still in need of extra assistance, then it may be time to consider taking out a personal loan.
Read more: Managing Your Mortgage During The Coronavirus Crisis
Keep A Close Eye On Bank Accounts
A lack of income makes it difficult to keep your bank balance in the black. You can attempt to reduce your monthly expenses to stem the flow, but you may still find that there’s more money going out than coming in.
Avoid overdrafts and prioritize money for essentials. Be wary of coronavirus scams and don’t hand over personal details unless you exactly know who you’re speaking to.
Finally, check your credit report for free at AnnualCreditReport.com. You can check weekly until April 2021. When reviewing your report, make sure to look for any unusual activity or errors.
Learn A New Skill
Many industries will experience a vastly different landscape once the pandemic has retreated. Opportunities will be limited and the recovery in certain sectors such as tourism may take years. The increasing role of technology in production will also affect many people’s livelihoods.
Therefore, it may be beneficial to use the quarantine to learn a new skill or to enhance an existing talent. Many online resources are free so there’s little risk in discovering something new. Alternatively, the pandemic may afford you the chance to work from home full-time or use the extra free time to take on extra responsibilities within your existing company.
Discuss Repayment Options With Your Lender
Even if you’ve cut down on spending and receive benefits, you may still require assistance to cover bills. Thankfully, due to the unprecedented situation, many lenders offer forbearance for lines of credit.
Forbearance doesn’t mean the loan is written off, but payments are paused. Interest will still accrue, and the balance will still need to be repaid. Some lenders will insist on a “balloon payment” after the forbearance finishes, while others may move the missed payments to the end of the repayment period. Discuss options with your lender.
Bottom Line
Losing your job is always a painful experience, but it’s important to keep calm and plan ahead. Ensure that you keep your finances in order and that you borrow money wisely. Additionally, consider adding to your skillset or helping out in your local community. The unprecedented situation offers opportunities to evaluate your situation and your future.
