Losing your job can trigger a rollercoaster of emotions, including anger, fear, and resentment. Missing your payments for long enough could eventually render you homeless. If you have lost your job, here are a few tips for paying your bills.
Find Out If You Qualify for Unemployment
Depending on the details of your job loss, you may be eligible for employment benefits. The government will give you a paycheck to cover your basic expenses until you find another job. Generally, you have to prove that you lost your job and that it was no fault of yours.
You may have trouble claiming unemployment benefits if you quit or were fired. It could take up to three weeks to receive your first check. Your unemployment benefits in Canada are usually 55% of your average insurable weekly earnings. The maximum annual insurable earnings amount is $60,300.
Use Your Emergency Budget
If you have lost your job, it may be time to consider digging into your emergency fund. Ideally, it would be best if you had enough savings to last six months after losing your job. When using your emergency budget, minimize your expenses as much as you can. For example, if you enjoy eating out, it may be time to start cooking more. Your new budget will include rent or mortgage, loan payments, utility expenses, food, insurance, and car payments. Focus on basic expenses.
Take Advantage of Payday Loans
Payday loans for unemployed are a great way to get on your feet when you don’t have a job. Some lenders only offer their services if you are unemployed and on benefits. Many lenders no longer require you to have a traditional income source. If you receive Employment insurance, it is considered a source of income.
Make minimum Payments
You cannot afford to neglect your credit card and loan payments. If you can’t continue to pay them off fast, consider making minimum payments. Being consistent with your payments will help maintain your credit score.
Find a Part-Time Job
You won’t always find your dream job as soon as you need it. Consider taking up a part-time job while you wait. Simple ways to make money include babysitting, pet and house watching, affiliate marketing, and delivering groceries. Think of your skills and experiences, and use them to make money.
Spend Less On Leisure and Luxuries
It can sometimes take weeks or even months to get out of unemployment. Until then, prioritizing your rent, utility bills, and other essential expenses is critical. This may mean sacrificing luxuries and leisure spending. It’s a small price to pay just to be current on your bills and have enough for the lean months ahead.
Losing your job doesn’t excuse you from paying your bills. You must stay creative even when you don’t have a steady income source. Simple tips include enrolling for unemployment benefits, taking out payday loans, and finding a part-time job. Create a budget and prepare to minimize your expenses.