Across the world, job situation remains to be critical. With the focus on cost cutting and savings, lots of companies across the industries are laying off employees in the bunch. The ones who are a higher pay grade are the ones to face the most damage. Management, generally, will like to bring in a person who demands less for the desired post, even foregoing the experience that current person will have. It is tough to manage the family when you have been laid off from the work all of sudden. Not many companies provide time for you to make the move. It is mostly a last minute notice. It is better to be prepared for the eventuality which may happen at any point of time. You can survive even without huge savings in your account.

Certain ways to survive

First and foremost, refinance the house. Refinancing is way better than going for mortgage. You can use the equity to pay the bills. Next option is to withdraw from your 401K. It is not popular since, you may need to pay penalties and tax for the early withdrawal of the amount. Another option is to take personal loan to take care of mortgage payment and other bills payment. But again, if you don’t repay on time, it will make a dent in your credit score.

One thing that you need to do as soon as you have been sent off from the job is to consult with your finance institutions and inform them about the situations. Some of them will understand the situation and will arrange for alternative plans so that both of you won’t get hit by this sudden layoff. It may help you to skip few months’ payment but it won’t be helpful in a long term aspect. Other option which may be the last one is to take help of local churches and organizations which may help you for some time to overcome the situation. Also, some organizations may give you temporary job when they have a need and pay for it, which will help you to take care of your finance. Also, state and federal governments have many programs to assist people like caught in such scenarios. You can make use of those arrangements until you get a job. Hopefully, these kinds of situations won’t be continued for a long time. Till the situation becomes better, you can consider these options.

It is always a terrible position to be in without a job and poor savings. It is always better to have healthy savings so when there is a bad time, you can ride over that phase easily. Always save some money for the future which will be helpful when the need arises.