Losing your job is tough, and the job hunt is no walk in the park. Sometimes finding a new job takes more than a few weeks, but your bills won’t wait for you to find employment. An extended period of unemployment now can put you in an insurmountable position down the line. We’ve put together five tips that can help you stay afloat.
- Minimize the extra expenses.
Downgrade your mobile data plan and do away your cable package. You can’t cancel your essential utilities, such as electricity and water, so cut back where you can. - Apply for unemployment benefits.
Before pursuing unemployment benefits, make sure you’re eligible to receive them. Requirements vary among states but the following is the same have to prove you lost your job unfairly or were let go due to circumstances out of your control, such as downsizing or your workplace closing.
You need to have quit your job for a very serious reason to be considered for unemployment. Keep in mind that there’s a limit of 26 weeks to receiving benefits. If you’re looking for employment in a highly competitive field or your area has a struggling job market, you can apply for an extension of up to 20 weeks. - Have a roommate.
Rent out a room or share your apartment with someone to help lighten your living expenses. Splitting the rent two or three ways can keep you from moving out of the apartment you love (but can’t quite afford). - Pick up a side gig.
Do you own a fuel-efficient vehicle? Consider partnering with a taxi service like Lyft. Not only do you have complete control over your Lyft schedule, you keep 100% of your tips and 80% of your profits. Of course, there are plenty of options besides being a cabbie. Use your crafty talents to sell homemade goods Take up odd jobs whenever possible. - Take out a loan.
When you’re in a tight spot and need money fast, a loan may be your only option. You may encounter difficulty in having your application approved, due to a lack of steady income. Don’t be discouraged—you have options. Ask a relative or close friend with good credit to be a co-signer. If you have a credit card, consider taking out a cash advance; the interest rate might be steep, but it’s a quick way to get money.
We’ll leave you with a piece of advice: avoid payday loans. These predatory loans take advantage of those in need. Although it’s easy to be approved for a payday loan, the interest rates are ridiculous; it’s not unusual to have a payday loan with an APR well over 400%. You only have a short period of time to repay the loans—and it’s not a realistic amount of time to repay a large sum of money.
When you’re unable to repay a payday loan, you’re stuck with a mountain of fines. Oftentimes, borrowers are caught in a cycle, taking out one payday loan to cover another. Stay away from these dangerous loans if you can help it.
