What to Do When You Lose Your Job

If you have recently lost your job, or if you know or fear that this will happen to you soon, here are some suggested action steps for you to take now.

The most important thing is to communicate your difficulty clearly with your creditors- do not wait until you have fallen behind! Remember- it is not beneficial for them to have you default on your agreements, but they cannot help you if you avoid talking to them.

 

  • Notify your first and second mortgage lenders or landlord and let them know there may be trouble ahead.
  • If you make a car or truck payment, contact your lender and ask for an extension.  Lenders can often give a 1 to 3 month deferral on your payment.  You may be asked to make an interest only payment during this time.
  • If you are paying a student loan, contact your loan servicer and request a forbearance or deferment which will put the loan on hold for at least six months.  While interest will continue to accrue, this is better than defaulting on the agreement.
  • Check your loan documentation to see if you are insured in the event of unemployment.  If so, contact the lender as it is your responsibility to let them know.
  • If you don’t have insurance, contact your credit card companies, banks and credit unions to request a hardship program.
  • Apply for unemployment benefits at the earliest possible time.  There is no shame in claiming your entitlements.
  • Look into state and human services programs that you may qualify for: food stamps, welfare assistance, state medical coverage (QUEST), etc.
  • Get professional advice before tapping into assets such as 401(k)s, IRAs, etc.
  • Prioritize whatever funds are available to cover necessities: housing, food, utilities, insurances, transportation and medical/prescriptions..
  • Review your budget thoroughly, eliminating all non-essential expenses.

If you have any questions regarding this information, or require other assistance, contact us.


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Our Mission is to:
  1. Provide confidential debt management and credit counseling to families and individuals of Hawaii.
  2. Educate individuals and the community at large about the intelligent and responsible use of credit.
  3. Help over-burdened families regain control of their financial lives.
  4. Promote financial and social responsibility.