The Affects of Job Loss on Your Credit Score
How to handle credit and bill payment while you are in between jobs:
- Examine your finances
- Determine your monthly expenses
- What is basic amount of survival money you need to meet your monthly payment obligations?
- Look for hidden expenses which may be eliminated for the time being.
- Think about all of your available lines of credit, such as the equity you have in your home and your savings.
- Your 5 priorities should be rent/mortgage, utility bills, food, insurance, and medicine.
- Call your creditors and explain your financial situation; creditors are more likely to be reasonable discussing payment options than if you wait until you have missed a payment.
- Don't close your accounts and cut up your credit cards; use them sparingly. Unemployment will compromise your ability to get a line of credit. if you have an overdraft guarantee from your bank for $4,000, but only $200 in your account, keep the account open but abstain from using it. It takes time for a bank to develop trust in account holders; avoid tarnishing your relationship with your banking institution.
- Create a job search plan of action. Be strategic not only in your finances but in your search for a job as well.
- Look for networking opportunities everywhere.