The Cutting Edge: Managing the Aftermath of a Layoff

The Cutting Edge: Managing the Aftermath of a Layoff


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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