How Did This Happen? The Unexpected Happens

Part 2: Sudden Unemployment

Sudden job loss can be devastating on the emotional level as well as the financial level. I remember suddenly losing my job in the 2003 economic downturn. I was devastated emotionally as well as unequipped to deal with the financial end of things. For the first few days after my job loss, I kept writing out budgets and worrying about how we would survive. I put a lot of energy into useless activities. When I finally calmed down, I was able to deal with the reality and make some good decisions. So, first take a few days to calm down before you do anything.
One book I read thought that it was fine to put expenses on credit cards in the aftermath of a job loss. However, one woman I met at my Frugal Living to Accomplish Your Goals presentation said that she and her husband did just that. Now they are struggling to stay afloat and pay off those credit cards. Her husband was taking a third job to try to get them out of debt. I can’t stress enough that this is why everyone needs an emergency fund. This is why people save it. Life is filled with uncertainties and everyone needs an emergency plan.
When you lose your job, your first phone call should be to your creditors. Call the credit card companies and your car loan people. Tell them you lost your job. When I did this, I was able to get our minimums lowered to $15 for three months on our credit cards. I was able to not pay our car loan for 2 months in exchange for extending the loan for 2 months. This strategy helped us dramatically. Don’t put off calling them or thinking that if you ignore the bills everything will work out. By hiding from the reality you are putting yourselves in a worse position. Credit card companies are willing to work with you.
The next thing you should do is to take a hard look at all the bills. All non-necessities go. Cut your cable bill as far back as possible or scrap it altogether. All computer game websites and other types of subscription websites should be dropped. Subscriptions to DVD, music and book clubs should be cancelled. Remember that this may be temporary or it may be a long time. If it is temporary, then you can resume your subscriptions again. If it is for the long haul, then that money will be needed. You can replace most of these things by using the public library’s DVD, music and book collections. You can also trade or borrow games, books, CD’s etc. with friends. Get creative!
If you do not need the computer to look for a job, then you may have to cancel your internet subscription. Public libraries can help you there. They have a free dial up connection that you can sign up for. Ask the Cecil County librarians about how the Sailor Cruise Account works. Another alternative is to use the computers at the public libraries.
The most important thing to remember is to take care of yourself and your family’s basic needs. Rent or mortgage should be paid first. Then food, utilities and work related expenses such as transportation and child care. If you can, get friends and relatives to baby sit while you look for a job. Offer to trade babysitting with someone. Pull your child out of day care or at least reduce the time spent there.
All children’s activities that need to be paid for, should be stopped. Remember, kids will not like it but you know how urgent it is to use that money for food. It is fine if a child misses music lessons or karate for a few months. Explain to children how you will all have to go without a few things until Mom or Dad finds a new job.
There are several different resources available for help in Cecil County. The Cecil County Help Center is a remarkable resource. Anyone can drop in and get free clothing for themselves or their families. They also have a food pantry but recipients must be referred by the Dept. of Social Services. There are other food pantries available in our county. Here is the Maryland Dept. of Human Resources’ link to information about resources in our County:
https://www.marylandsail.org/ElectronicDocs/soupkitchens/Cecil_County.pdf
If anyone knows of other pantries, please leave the information in the comments section. Additionally, some of the churches have free meals during the week. Look in the Cecil Whig for weekly information on which churches run the free meals.
Don’t get farther and farther into debt when you are unemployed. First, cut all non-necessary expenses and then make payment arrangements with your creditors. Look for free or low cost resources in your time of need. If you are not unemployed now start saving your emergency fund!