Business

7 Emergency Steps to Take When You’ve Lost Income

Coronavirus is a dangerous disease that affects thousands of people around the world every day. The pandemic has had an enormous impact not only on human life. It has affected the world economy. 

About 17% of Americans say that they’ve lost their job due to the coronavirus infection pandemic.

Despite statistics say, that the unemployment rate is decreasing, still, millions of people have been left unemployed and unable to pay their bills. So if you’ve had such an accident — the first thing to do is not panic — you’re not alone. The initial thought that might come to mind is: “I need a loan urgently.” Naturally, where else to get money if they are not paid at work. 

If you have already taken out a loan and are stumped — you don’t know how to pay it back, there is a way out. If you are in financial distress because of a coronavirus, you can apply for credit vacations. They are suitable for all types of loans from banks, microfinance organizations, and credit consumer cooperatives. 

What to Do if You Lose Your Job

Just yesterday, your life was stable and orderly. You were making plans for the future: repairs, vacations. And today, like a snowball on your head: dismissal! Unfortunately, the situation in the country is such that this scenario is possible for all of us. Here is a little advice on how to behave if the news of dismissal caught you off guard:

  1. Let your emotions flow. Just a deal: give yourself a maximum of two days for “tears-sniffles”!
  2. Stop blaming and self-pity. Do not look for faults in yourself, which contributed to the dismissal. You will lose a lot of energy and strength for such unproductive things.
  3. Begin to take action. Analyze what the real chances of finding a new job quickly in your specialty are. Examine the available jobs and immediately, without procrastination, send your resume.
  4. Look for options. You may not be able to apply for a job in your field, but you can’t help it during a crisis. Consider the proposals for jobs not related to your main occupation, but which in principle you could cope with.
  5. Put yourself in austerity mode. In comparison, you can’t say for sure when things will even out, so cut spending to a minimum. If you owe money, try to take credit vacations, as described earlier.

After these tips, spring into action and believe in the best!

What if You Lost Your Job Due to Covid

An overwhelming percentage of people dropped out of work because of the pandemic, with many others having their hours, paycheck, or income cut. 

From the beginning, you need to apply for any financial resources available to you, such as unemployment benefits. Here are some tips to help you survive and hold out until your income recovers. 

Step #1: Examine Your Spending

Create a list outlining all the monthly expenses you have. Determine which expenditures you ought to cover and which can be deferred or postponed. For instance, the majority of gym subscriptions are a cost you can ask to defer. Some other expenses you can wait for are entertainment, groceries, and personal hygiene items.

Step #2: Discuss Your Situation With Your Creditors

If you are behind on a mortgage or credit card payment, describe your predicament and ask for a reduction or deferral of the payment. Be sure to write down the name and ID number/phone outline of the person you talked to and the schedule you accepted. You can be amazed at how much amount of money you can save from your monthly budget just by calling.

Step #3: Estimate Emergency Savings

Now is a perfect time to take advantage of emergency savings, if you have any. People are supposed to have a three- to six-month safety cushion to cover expenses in case of such difficult situations. If you are fortunate enough to have such a safety net, you should allocate it to pay all upcoming bills even if you don’t have enough money to last very long, every little count.

Step #4: Not Paying Bills Is Ok Now

If you can’t pay your utility bills, there is nothing to worry about. Some electricity providers claim that they will not disconnect the lines if a customer is behind on a payment. This also applies to Internet service providers. This is a situation where excessive communication is better than insufficient to avoid problems with utility shutdowns or foreclosures.

Step #5: New Job Searching

Look at the job postings. The coronavirus epidemic has presented an unsurpassed obstacle to the employment market. But amid high demand in grocery stores and warehouses, many places are still hiring. Vacancy announcements for remote, online, freelance jobs have increased significantly, while retail hiring is close to last year’s levels.

Step #6: Check Health Insurance

Make sure your health insurance doesn’t go away. When you’re not working, it may seem like an out-of-pocket cost to pay for health insurance, but this is when you and your family need coverage the most.

 Only a single unfortunate accident or a sudden sickness, and you could find yourself hooked on spending thousands of dollars of deductible costs, just when you could afford it the least. You can also be eligible for free or low-cost Medicaid insurance coverage, while your children may be enrolled in the Children’s Health Insurance Program.

Step #7: Check News

Observe the news. It’s essential to be informed about what’s going on in the government at the federal, local, and state levels. This will ensure that you are more knowledgeable about new possibilities when they arise.

Scammers, during an economic crisis, often try to take unfavorable advantage of those in financial distress. For example, spreading inaccurate financial advice or generally luring you into unsafe investments. 

Some people also discovered that they were victims of fraud when it came to unemployment compensation. It is essential to remember that an FDIC-insured bank is always the safest place for people to keep their money.

By taking these basic steps, you can save your livelihood down the road.

Conclusion

Don’t forget to stay positive. Don’t lose faith in yourself and your capabilities. Concentrate your energy and time on the things you can proactively accomplish to bring about improvement, and avoid worrying about anything that is beyond your control. Remember that everything is for the best. Maybe this very time you will change your life for the better, who knows?

Ethan

Ethan is the founder, owner, and CEO of EntrepreneursBreak, a leading online resource for entrepreneurs and small business owners. With over a decade of experience in business and entrepreneurship, Ethan is passionate about helping others achieve their goals and reach their full potential.

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