A period of being jobless can be financially and emotionally devastating. Even if you have received a redundancy paying, keeping up with all your monthly payments can put a real strain on your finances. Once you get back into the workplace, taking certain steps can help you to get out of debt and improve your finances.
Your financial recovery after being jobless will depend on carefully assessing your finances and formulating a recovery plan. Perhaps you haven’t landed the job you want and you have just taken it to get a foot back in the workforce.
Even so, you should give it 100% and keep networking if you want to find a more appropriate job in the future. It is possible to recover financially after unemployment if you take the following steps.
Assess your financial situation
Taking stock of your financial situation includes seeing how much is left in your savings, if anything, and making a list of all your debts, including those you have incurred during your time of unemployment. You will have to work at repaying these debts and even though you now have a job, you still have to get through the time until you receive your wages.
Taking out a loan can help to bridge the gap. Cobra Payday Loans has access to FCA authorised lenders. It will forward your application to them and if approved, you are directed to the lender’s website to complete your application.
Develop an action plan
The first thing you will need to do is to create a budget that takes your new income into account. If your new income does not sustain the type of lifestyle you were used to before, you will have to make some lifestyle changes. A major change could be downsizing your home and more minor adjustments could be eating out less, not going to movies or cancelling a gym membership.
Your priority for paying off any debt should align with what payments have the most impact on your daily life. For example, a car payment is important if you need the car for your new job.
Things such as your rent, mortgage and tax or utility bills are classed as priority debts. If you fail to pay these debts, you could lose your home or have your electricity or gas cut off. If you need a car for your new job, you do not want car loan company to repossess it and so making your car payment would also be a priority.
If you have a credit card, call the credit card company and try to negotiate interest rates. Companies may be willing to reduce interest rates if there are extenuating circumstances and you were never late on your payments.
Give 100 percent at the new job
A period of unemployment is likely to affect your self-esteem and if you let it, this could affect your performance in your new job.
The best way to restore your self-esteem is to do your best in your new job and develop a reputation for going the extra mile. Even if the new job is temporary, your performance could help you to receive a good reference for another job.
If you have taken a lower-paying job or a position outside of your industry just to get back into the workforce, it is important to keep networking. This can keep the door open to finding a more appropriate job in the future. You want your network to think of you first when wanting to fill a new position that requires your particular skills.