Job Loss and What You Need to Know

Job Loss and What You Need to Know

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By Bromwich+Smith Staff | 671 words | Reading Time: 3 minutes and 21 seconds | Date: 2022/09/16

It happens to the best of us, Unemployment. When it happens, you will likely feel blindsided and shocked. In those initial days you will have many feelings ranging from anger, to sadness, and fear. All of these are normal, and you will get through this rough patch though in the moment it doesn’t feel like it. What are the things that you should know, and how should you process the next steps?

  1. Make a plan.
    Hopefully you have an emergency fund with 3-6 months of expenses set aside. This money is set aside for surprise situations like this, and it will buy you some time while you look at your options. If you do not have an emergency fund set aside, or there isn’t enough money to cover your expenses you will need to start looking at all options. You may have received a severance package, been paid out vacation pay but you may need to look into applying for Unemployment Insurance quickly. There is a waiting period before any funds will be released to you and the amount of money you qualify for will depend on where you live and what your salary was. ( LINK https://www.canada.ca/en/services/benefits/ei/ei-regular-benefit/apply.html)
  2. What Next?
    This is the ideal time to make some tough choices. Evaluate your last job and your qualifications. Did you enjoy the work you were doing, were you happy in your role and with your level of pay? This could be the time to investigate new jobs based on your qualifications. It could also be the right time to revaluate and upgrade your education. Our partners at Jobshift help job seekers in a truly holistic way contact them at 1-877-782-3378 to see if they can help.
  3. Look at your budget.
    How long are you able to survive without finding a new job? Take a look at the income and savings you have, and the expenses are current debt. Canada is currently experiencing historic low unemployment rates of 4.9% at the time this blog was published. This rate will vary based on where you live, and the industry you are in. Once you start your job search you will have an idea of what is in the market, and you may find new employment right away but it could be weeks or months before you find your next job.
  4. Avoid Overusing Credit.
    The bills will continue to come in and need to be paid. Consider putting away your credit cards, unless your savings will ensure that they will be paid off each month. By adding more to your credit now, your payments will grow each month and without the income to pay them you will incur more in interest charges. If those bills go unpaid the creditors will be calling and adding more stress to your situation. Consider calling your creditors and look into options to defer payments until you are able to get set up in a new job.
  5. Debt Relief Options and Unemployment.
    We know that the idea of filing for bankruptcy is intimidating and comes with a lot of emotions that may be overwhelming. Knowing your options will give you a step ahead. There are many choices ahead of you and you may be considering delaying payments which will put your further back and increase your interest while decreasing your credit score. You may be aware of credit counselling, but you may not know that Consumer Proposals and Bankruptcies are other viable options.

 

To learn more about the impact bankruptcy and Consumer Proposals can have on your credit visit ( LINK https://www.bromwichandsmith.com/impact-credit)

While job loss is typically not a welcome change, know that you are not alone. Now is the time to lean on your support system and remember that you will get through this challenge. Bromwich+Smith is here for you if you need supports to help you regain control of your finances and get your life back on track. Reach out today for a free, confidential, no obligation consultation. Bromwich+Smith’s Debt Relief Specialists are available by phone at 1.855.884.9243, or request a call back at contact us page. We want to see you flourish!

 

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