Few things are worse for the mortgage holder than losing a job. Once a pay check stops coming in, it is amazing how far behind you can fall and how quickly that can occur. One month you seem to have enough money to buy extra things, the next you are worried about making your mortgage payments. What should you do if the company you work for suddenly decides to move to the United States and take advantage of the types of rates offered there? Here are a few ideas.
First of all, we hope that you are reading this article as a cautionary measure rather than an emergency one. The best way to prepare for the loss of a job is to have money set aside beforehand. A good rule of thumb for a home owner is to have enough put away to pay for all the household expenses for one month. That means bills, mortgage payments, transportation costs, vehicle payments, everything. That way if you get laid off from your job you won't be in dire straits right away.
Whether you have back up money or not, you will need to immediately curb your spending. No more taxis to the hockey game, eating out at restaurants, and no more entertainment either. Remember that your whole lifestyle needs to be put on hold until you find another job; you need to kick into survival gear. This will affect everything, even your grocery shopping.
As soon as you find out you are going to lose your job, begin the process of applying for Employment Insurance. If you have been laid off, it should just be a matter of time before you get some of that money back from the government. It won't be enough to pay for new patio furniture, but it can make ends meet. Just remember that it will take some time for all the paperwork to go through.
Keeping time in mind is important because a lot of people start to borrow when they lose their jobs. They take advantage of lines of credit, credit cards, and so on. Just remember if you do this that you are paying more money than you realize. Class action lawyers have never been able to do anything about the exorbitant rates of interest lenders charge; don't dig yourself into a hole you can't get out of.
If you do need to borrow money, be discerning in whom you approach. Family members are often the best source, since they may loan you money with little or no interest. Once your immediate finances are secured, it is time to start looking or training for that new job.