If the unimaginable has happened to you, you are probably in a state of shock. You may be asking yourself how this happened and how you are going to make it through this. While this is a hard time, remember, it is only temporary. You just need to stay afloat until you get a new job. You don’t have to have a huge savings to get through this time. There are several ways to get you through this.
Refinance Your Home
If you have a home, this is a good option. Refinancing a home is easier than getting a new mortgage. The equity can be used to pay bills. The funds that you receive will be repaid in payments to your mortgage.
Withdraw Some of Your 401K
This isn’t an option that is popular because you will have to pay penalties for withdrawing it early. You will also be taxed on the money that you take out. This isn’t a great option, but if you don’t have a savings, this may be your best option. If you have poor credit, this is a really good option because credit is not a factor. There are downsides, but it could save you from losing your home, vehicles, or the good credit you worked for.
Reach Out For Help
There are churches and organizations that have resources to get you through this time. Many can help with food, utilities, and other types of bills. Each organizations will have different requirements for what they can pay for and how much. State and Federal government have many programs that can help also. You can get food, medical, school lunches, and even a cell phone paid for. This may not feel great to ask for assistance, but your situation is what these assistance programs were meant for.
Many of your lenders know that circumstances do change sometimes. Many mortgage companies, credit card companies, and banks will give you a grace period as long as you contact them ASAP. If you’ve missed a few payments, they may not be willing to work with you. Many credit card companies even offer programs just for your situation. Missed payments will kill your credit, so call your lenders as soon as you are laid off.
A personal loan may be your best bet for a temporary solution. Even if you’re credit isn’t desirable, this is still an option. This loan can be used for anything you need it to. Whether it is your mortgage, food, medical, you’re free to use it as you need. When accepting the loan, be sure that you can afford the payment. Just like your other lenders, missing a payment will be bad for credit.
If you’ve found yourself in this terrible situation, you can use the tips above to keep you going until your next job comes along. Combine these options together if you can. A loan and some of the assistance programs can keep you from bankruptcy.