by Lacey Nix

Created on: February 17, 2009   Last Updated: February 22, 2009

Financial analysts are calling it a financial meltdown; pundits say we are in a recession, but none of these words hit home until you are faced with unemployment yourself. Managing day to day debt while unemployed may seem insurmountable, but with some fiscal responsibility, tight budgeting and diligence you can make it through the rocky times.

Watching television you will see that financial analysts hope that everyone has savings in case they become unemployed, however for most Americans living paycheck to paycheck is more of a reality. There is help available for those who do not have any savings and the faster you act on getting help, the quicker you and your family will see some relief. The following are a list of steps to follow if you or a family member becomes unemployed.

1. Make a list of your all the money you have going out and all the money you have coming in.

This is the first thing you should do to balance you financial life. Make a column for your monthly expenses going out and another column of any money you have left from savings, your last check, severance package, or unemployment benefits that are coming in. Do this on a monthly basis so you can have a clear picture of what your financial status is. Make sure you include money you spend on groceries, food, daycare and other basic necessities.

2. Prioritize your bill payments.

If you are unable to pay all your bills at the current time, make a list with your top priorities. Obviously you need a place to live so make sure your rent or mortgage is at the top of this list. If you are paying on credit cards consider making the minimum payment instead of a larger one. Talk to your creditors about late payments. Some creditors have minor fees for paying late. If you find these companies on your list weigh the late payments and try to prioritize this way.

3. If you are having trouble paying your bills, talk to your creditors, don't stop paying without explanation.

Companies are all too aware of the financial crisis going on in our country. Many have developed programs specifically for their clients when they experience financial hardship. They don't want to lose your business. Call and explain your situation and see what programs are available to help you pay your debt. Some companies may give you 2 or 3 months to make a payment with little or no late fee. Just make sure to call. At the very least you can make payment arrangements and keep yourself out of major trouble.

4. Put a tight rope on your disposable

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