by Joy Johnson

Created on: August 04, 2009   Last Updated: August 16, 2009

So you lost your job. Now what? Knowing that other people are in the same boat might take some sting away but right now you need a game plan. Losing a job is a double-edged sword. Don't panic. Do the obvious by applying for your unemployment benefits, tightening your budget and looking for bargains.

Some companies offer severance packages but even if yours did not, you can still apply for unemployment. In some cases, even if you were fired and you don't think you will be eligible, many times you will be. Company's make mistakes and don't always keep adequate documentation, so give it a try. Applying for unemployment can be a process that will require patience as you may need to wait for lengthy periods of time on the phone and complete lots of forms. If you need help with this process you can ask for help at your local unemployment office.

The biggest fear that goes along with losing a job is whether or not you are going to be able to cover your bills and whether you might lose everything before you get hired again. You need to prioritize in the following order: food, transportation, water and utilities and then mortgage. You need to know that you and your family will have enough food to eat and transportation to get you to and from important places such as job interviews, school and to the store, etc. Budget money for fuel and if you have a car payment, make it. Even if you had to move out and rent your place or live with a relative, you will need your car, or whatever transportation you usually use, to bridge the gap from your last job to the next. Relying on others to get you around isn't the best plan and can lead to resentment.

Most lender's are willing to work with you on your mortgage and even landlords would typically rather have their place rented even for a little less than owed, rather than have it sit vacant and risk vandalism and disrepair. You can often make reduced payments but contact your landlord or lender and make sure to communicate your situation rather than keeping them in the dark. If you live in a place where you are responsible for HOA (home owners association) fees, in addition to your mortgage, don't forget to contact them as well because they can and will put a lien against your place if you don't communicate with them and you may risk losing your home in the long run as a result. You will need to have water, gas and electricity to make sure you can prepare your food, shower and keep your clothing clean to make sure you are prepared

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