The Cutting Edge: Managing the Aftermath of a Layoff

Know your options when you've lost your job

additional debt and hopefully at some point in the future you will be able to pay it off,” he says. Keep in mind that though your cash flow will pick up once back at work, you do have additional debt that you have to pay off.

Exercise caution before claiming economic hardship: Many credit card companies have hardship agreement programs that can create an affordable payment system for you. But lowering your payments this way can negatively impact your credit score, Davis says. This can hurt you when trying to buy a house, car, or even get a job. Make sure the benefits outweigh the costs if deciding on an economic hardship agreement.

Manage your interest rates: If you haven’t called your card company to talk down your interest rates, hop to it! This can be one of the quickest and easiest measures you can take to make your monthly payments more manageable. If that doesn’t work, you may want to consider a balance transfer, says Fulbright.

“Some balance transfers are permanent rates are permanent,” she says, meaning they last until the balance is paid off.

Again, compare any teaser rates with how long you think you may be out of the workforce.  If you’re backed into a corner and the teaser rate is for three or six months, talk to the creditor, let them know I’ve been laid off, can we stretch this?’” Fulbright says.

Tell us your story. Have you had to “live off your credit cards”? How did you pay them off?

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  • http://www.classic1824.com The G-O-D, Born.

    Peace and Blessings,

    I greet all in the universal salutations of peace, which is the presence of tranquility and absence of chaos.

    These economic trails and tribulations that we are experiencing in various degrees, all are faced with one commonality, the need for cash. Cash Money, not credit, not tapping into saving or IRA’s. If like most Americans, you have below par FICO, cards are maxxed or non existent you are perhaps destined for the foodbank, swap meet, thrift store, or going to the black market or criminal activity. We all know no one wants to be a “criminal” it is usual instigated by poverty’s paradise. So someone has to resort to drastic measures. While not my twist, since I have some skill sets I can put to use to create other revenue streams. Some are not as fortunate and have way more mouths to feed than I do.

    I am thinking long range here. With new energy sources as a must, couldn’t this boost industry and give potential jobs to those who are kicked out the rat race?

    I say make your own lane essentially. President Obama can only do so much for us if we dont do 2 times as much for our ownselves.

    I bid you all success in 2009 and beyond, we can do anything as long as we do it together, as no one makes it with out a little assistance.

    P.E.A.C.E
    Protect Essential Assets Cars Excluded :)