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This is another guest post from Joe Plemon from Plemon Financial Coaching. Joe is the Money Columnist for The Southern Illinoisan. Earlier I had to wrote 5 Ways to Survive a Layoff. Joe takes a bit more direct approach about what things you can do immediately.
Q: Joe, I have been told that the company I work for will be making layoffs over the next few months. I will be given a 30 day notice if I am going to be laid off. My wife and I have been working the debt snowball, focusing first on our credit card debt. We also owe on two cars and our house. Should we continue our debt snowball at this time? Any other tips?
A: Because you are facing a possible emergency, you should temporarily stop your debt snowball and start building your emergency fund. For now, make minimum payments to everyone and save every extra dollar you can. If the layoff happens, you will need that emergency money. If the crisis passes and you are confident of your job situation, you can use the extra savings on debt at that time.
Other tips:
Consider selling one or both cars.
You don’t need car debt when you don’t have a job and you don’t want to be a motivated seller if the layoff happens, so consider selling now.
Prioritize your finances.
If the layoff happens and you don’t have enough money to pay everyone, prioritize. Groceries, house payment, utilities and car payment always come before any unsecured debt. Your house can be foreclosed and your cars can be repossessed. Credit card companies are at the bottom of the list because they have no assets to take.
Look for work now.
You may not want to stay with a job that is so uncertain, so start looking for something else.
Think positive.
When her eaglets are old enough to leave the nest, the mother eagle places thorns in the nest to make it uncomfortable. This job crisis may be the thorns to push you toward something you have always dreamed of. You may be getting ready to fly.
by cameosteph
Securities offered through LPL Financial, Member FINRA/SIPC
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