There are few experiences as stressful as losing a permanent job. Whether you have quit by choice or been laid off, the loss of a steady source of income is sure to keep you awake at nights. Add on to it the enormous pressure of having to handle your finances.
With the employment benefits cut off, most people fall back to their credit cards to make their ends meet. Desperation makes one act hastily and as a result most people find themselves in a dicey situation.
Don’t let yourself be fooled by financial schemes that promise short term investments with exorbitant returns and negligible risks. It’s crucial to know the right way to handle unemployment without getting demotivated & duped.
Here is a step by step guide to help you Outsmart Unemployment.
File A Claim for Unemployment Benefits
This option is only applicable if you have been laid off or terminated through no fault of your own. If you quit or were fired for misconduct then you are not eligible to claim for UI Benefits.
The process of filing for unemployment differs from state to state. Make sure you check the conditions applicable in your state.
The state unemployment office will help you with the documents required for the procedure. Generally, everyone needs to have a few forms and numbers such as:
– Social Security number
– Driver’s license number
– Name, address, and phone number of your previous employer
– Employer’s Federal ID Number
– Date you started work
– How much you earned over the last year
The state reviews your claim after you have applied for the unemployment benefits and decides how much should you get paid, thereafter. Ones your case has been approved you’ll have to file for benefits every week. Amidst of this you’ll also have to check in with the state unemployment officer to show that you’re actively looking for jobs.
Get Health Insurance
Companies cancel your health insurance that is provided by your employer as part of the total compensation package.
But before you mourn the loss of these benefits, here are some options you can avail to keep your health insurance alive and kicking.
The most popular method to continue insurance is COBRA (Consolidated Omnibus Budget Reconciliation Act). This is offered to those terminated from a job as a way to continue the coverage they had under their employer.
The downside is you will pay 100% of the premium, which is very expensive, and COBRA coverage normally only lasts for 18 months. It’s also rough if you have medical costs during the 44-day gap period, because your doctors will be told that you have no insurance.
It might seem like an expensive deal but it’s still cheaper than paying out of your pocket for the same coverage.
There are other options like new federally subsidized health care provided under the Affordable Care Act, that you can apply for. Unemployed people are eligible for either Medicaid or the new subsidized coverage for the duration that you’re unemployed.
Review Your Expenses
Cut down or reduce costs beyond the basic necessities. Make a list of all your expenses and then strike down the ones that are unnecessary. Try to find affordable alternatives to things that aren’t too high on the necessity scale.
To keep/ maintain a good credit score you need to get in touch with your creditors and let them know about your situation. You can request your creditors for a modification or a reduction in payments.
Get in touch with your finance advisor and get him to help you find lenders and options for Personal Loans for unemployed people.
There are certain Short-term loan options that you can check out. Pay day loans are a great option if you are looking for instant financial assistance. Also, there is no credit requirement for unemployment Payday loans.
Update Your Resume & Start your Job Search
It’s important you start planning an alternative source of income as soon as you lose/leave your job.
If you have been employed for some time now, your resume must be outdated. It will be best to download a Free CV template, to start with.
The industry keeps changing and a CV template will be an instant way to catch up with these changes.
Make sure you download your CV template from a trust-able site where the formats have been approved by the recruiters themselves. The earlier you get past the CV stage the more time you’ll have to apply for jobs.
If you are planning to work-from-home or be a remote employee then look for job providers that are authentic and have legitimate work opportunities for your skills.
Losing your source of daily bread better can be demotivating but if you chose to look at it differently, it can serve as a stepping stone to a great future. Surviving with hopelessness is way worse than surviving with meager money.