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Transitioning between jobs can be very stressful, especially if it is unexpected, but it doesn't mean financial ruin. You just need to make sure the money you do have, last as long as possible.

Before, you even consider what to do, the first thing is to organize a budget. This will give you a good idea of what your current position is, and how long the funds you have will last. Reduce your expenses to the bare minimum, so that the money you do have lasts over the longest period possible.

Most people have credit card debt, so you're not alone. So what do you do, pay it off now, so you don't have to worry about interest and regular repayments, or do you just pretend it doesn't exist?

Although in the short term it might reduce the amount of interest charged on your debt, if all your available funds have been used to pay this debt off, how will you survive the next weeks, or even months? That's right, all your expenses will fall back onto the credit card, and you're going to be paying just as much in interest then when you started, and you will have no cash to pay the required repayments. Adding more to your debt at this stage, is very risky so try to avoid that easy credit where you can.

When you are under some financial stress there are a couple of things you should look at doing with regard to debt. The most important, is for those that have a mortgage or a large sum of debt. Talk to the bank, now rather then later. You will be surprised at just how understanding they can be, especially if you're the one coming to them before repayments start going missing. You may even be able to negotiate a reduction in repayments for a period of time.

For those that have multiple sources of debt, consider consolidating. Not only will it be easier to mange, but you will likely have lower repayments. Shop around and see if you can get a better deal. For credit cards, you may want to look at something that has an interest free period. However, always do your research and ensure that the normal interest rate once the honeymoon period is over is still competitive.

Although at this stage you will not be focusing all your funds towards debt, minimum repayments will still be required on a regular basis. These repayments will generally not cover much more then the interest being charged, however reduction of debt is not your priority. Once you're back in work, you can then start looking at a plan to repay your debt a little quicker.

The strategy being proposed here shouldn't really be classed as saving either. All that's being suggested is that you plan ahead, and ensure you have enough funds to last as long as they can. This just means holding on to as much cash as possible, for as long as possible.

If you plan for the worst you may be presently surprised, when you find work before your funds run out. If you do end up having a few dollars left over, you can then consider paying a little extra off your debt, or saving it for a rainy day. Either way it might be worthwhile holding onto the extra funds until you're certain that your new found employment is permit and your income is secure.

A final word, don't panic! If you take the time to think it through and reorganize your finances you can work though these turbulent times and reach the other end without being in financial ruin.

Learn more about this author, CE Wynn.
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