How to Deal with a Sudden Loss of Income

by Fox Symes on June 14, 2013

Suddenly losing your income can be a truly devastating experience, not just emotionally but for your finances as well. It might feel difficult to keep moving forward, however there are a few important things to keep in mind that will help you through this difficult time. Here are some tips on how to deal with a sudden loss of income.

Evaluate Your Situation

When you suffer a loss of income, it’s important to immediately sit down and assess the situation. Consider what shape your finances are in, and how much you have set aside for emergencies. If you don’t have an emergency fund, then you should work out exactly what your expenses are and how long you can cover them based on what you currently have available. This can give you a time frame on when you might start experiencing difficulties meeting your financial obligations.

Make the Call

If you have any loans, credit cards, insurances or other direct debits, it’s important that you call your lender or service provider to inform them of the situation. You’d be surprised just how understanding they can be if you give them plenty of notice and fully explain your situation. Often, your repayments will be suspended until you find alternative work, or you may be able to negotiate a payment plan that works with your financial situation.

Get Professional Help

It’s easy to feel overwhelmed when you experience a sudden loss of income, however it’s essential to remember that you do not have to face this alone. Contact a professional debt solutions specialist to receive quality help, support and advice on how you can best work through this situation. They can take over any negotiations with creditors and will be able to give you the assistance you need to stay on track with your finances.

Start Searching for Alternatives

As soon as you are aware of your income loss, you should start looking for alternatives. It’s unlikely that you will simply walk from one job straight into the perfect replacement, but you never know what is out there until you start looking! Don’t be afraid to try something different, change can be a refreshing experience when you are in this position. It’s also important to keep an open mind, and don’t lock out casual or part time jobs because you feel like they won’t earn you enough. At this stage, every little bit counts, and a casual income is better than none at all.

Losing your income is tough, however there is always light at the end of the tunnel. Remember to seek help if you feel like you are struggling, as a professional advisor can really help to take the stress out of the situation and let you feel in control once more. Whatever happens, don’t give up, and take each day at a time. Your good luck could be waiting just around the next corner!

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