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The Future Can Be Scary

Losing your job can feel like a punch to the gut.

Yesterday, everything was fine. You could pay your bills, support your family, and plan for the future. Then, your boss calls you in for “the conversation,” and suddenly, everything changes. The future seems scary, and you’re worried about finding a new job in a tough economy, while still managing to pay your bills.

‘Losing your job is one of the top five most stressful things that can happen to you’

Losing your job is one of the top five most stressful things that can happen to you, right up there with going to jail or finding out you have a serious illness. If this happens to you, take a deep breath. Remember, you are not defined by your job. It’s just something you do to earn money for your family. Now, let’s look at some steps you can take to improve your situation, both if you are in debt review or even if you are not.

First, go home and talk to your family. Don’t try to hide it from them. Face this challenge together as a team. Be honest and open about what’s going on.

Next, figure out your current financial situation. Check your bank account and see if you have any retrenchment benefits from your company. Calculate your new monthly income and compare it to your current spending. This will help you see the gap and plan what steps to take next.

Look at what you own that could be sold, like your home or car. Check websites like Gumtree to see what these items sell for, and maybe even talk to a real estate agent.

Contact your creditors and let them know about your situation. Ask about your credit life insurance and how to make a claim for retrenchment. This insurance can cover several months of debt repayments, reducing your stress. After these payments end, you can make offers of reduced payments if you haven’t found a new job. Don’t hide your job loss from your creditors; be up-front and make a plan. Paying even a small amount each month is better than paying nothing.

Find out about claiming UIF (Unemployment Insurance Fund) and start the process as soon as possible.

 

Cut out all unnecessary expenses. Be ruthless, stop buying cool drinks and drink tap water instead. If you smoke or drink, now’s the time to quit. Cut back on social gatherings at your house and consider visiting friends instead. Cancel any TV subscriptions that might tempt you to relax instead of job hunting.

Collect any old debts owed to you and sell anything you’ve loaned to others if necessary.

Consider renting out a room in your home or even moving in with family to rent out your place. Discomfort is better than debt.

Use credit as little as possible, don’t keep spending as you did before. Make major cuts in your spending.

Make job hunting your new full-time job. Work at it for at least four hours every day. Visit sites like jobsearching.co.za to learn how to make your CV stand out, find job opportunities, and use your network to find work.

Don’t be too proud to take any job that comes your way. Even small jobs can lead to more opportunities and reduce your desperation.

Create a mini CV with your name, qualifications, and contact details. Give it to all your friends, family, and former colleagues. The more people helping you look for work, the better.

If You Are In Debt Review

If you’re under debt review, please contact your Debt Counsellor immediately to discuss your options.

This might include asking for a payment holiday or reducing debt repayments temporarily. Your Debt Counsellor can help you adjust your budget and find solutions.

Hopefully you have chosen to take out insurance while in the process that covers this very scenario. In that case, you can claim from the policy and they will cover your debt repayments (and in some cases, your living expenses).

Note: If you don’t have that sort of cover and are only now finding out about it, consider learning more. Ask your Debt Counsellor about how that works.

Take any and all of the previously mentioned steps to cut your expenses and increase your income. Don’t hold back, be serious and get extreme.

If You Are Not In Debt Review

If you’re not under debt review, consider talking to a professional Debt Counsellor for advice.

Many families use debt review to get through tough times. Do this quickly after losing your job.

In this tough economic environment, many people are out of work for a long time. Don’t try to carry on as if nothing has changed. Take drastic action to cut spending, find new income sources, and talk to your creditors. Get professional help quickly.

Please be cautious of scams offering to mediate with your creditors for a fee upfront. You might lose more funds that you actually need.

Perhaps you should go talk to an NCR-registered Debt Counsellor in your area. Even if you do not qualify for debt review right away, they can offer free advice and can then help you later with debt review to handle your debt when you do find work