It’s never a good time to lose your job. However, the current economic environment has resulted in teacher and educational support personnel layoffs, business closures, and downsizing for many Americans. Some project that the unemployment rate will reach 10% as new college graduates prepare to enter the job the market.

The National Foundation for Credit Counseling (NFCC) offers the following tips for surviving a layoff:

Allow yourself to be upset or even afraid.
These are natural reactions. However, should they become intense, be willing to seek professional help. Talking things through and hearing another person’s perspective can bring relief and help you move forward.

Take advantage of any assistance your school district or community offers.
Many districts provide placement assistance, job retraining and severance packages. Make sure you are aware of all benefits offered.

Apply for any applicable government benefits.
Your HR representative at work can be a good resource to apply for unemployment insurance and other sources of support.

Resist the urge to solve your problems by spending recklessly.
It may feel good for the moment, but the high of spending won’t equal the low of dealing with additional debt when you have no income.

Don’t be tempted to live off of your credit cards.
Someone with a good line of credit could potentially support a family at their current standard of living by using credit, but there’s no guarantee that a new job would materialize any time soon. Hopefully, you have an emergency fund to carry you through this difficult period.

Take a personal inventory.
Consider all assets, income and expenses. Hopefully, you will not have to liquidate any assets to survive financially, but it is good to know what you have to fall back on.

Drastic times call for drastic measures.
Nothing is off-limits. If necessary, consider selling a second car or any recreational vehicles, real estate holdings, rental properties or jewelry.

Review income versus debt obligations.
If there is not enough money to make ends meet, calculate how much is needed to take care of basic household living expenses. Your goal is to pay all creditors, but if you must make a choice, keep your home life stable by first paying your rent or mortgage, utilities, childcare, insurance premiums, health care, food and keeping gas in the car.

Have a family meeting that includes the children.
You don’t want people pulling in different directions, and a joint effort yields a greater result. Make cutbacks wherever possible, knowing that an austere lifestyle will only be temporary. Resolve with all family members to stop all non-essential spending immediately.

Track your spending.
It's always a good idea, but when money is tight, it’s essential. Write down every cent you spend. At the end of 30 days, review where the money went and make conscious decisions about where to cut back. You’ll be amazed by how much you can save and not even feel the pinch.

Contact your creditors to arrange lower payments.
Most major credit card issuers have in-house assistance programs. Explain your situation and what you’re doing to resolve it. The creditor may be able to temporarily lower your monthly payment or reduce interest.

Call your mortgage lender or servicer and inform them of your situation.
Be prepared to provide them with documentation of the setback, and have a resolution plan in mind. Since the average consumer doesn’t know all types of loan modifications available, it is advisable to first sit down with a certified housing counselor and map out a plan. This way you’ll know the option that is best suited to your situation. 

If you need help with your budget, credit, or housing situation, contact your nearest National Foundation for Credit Counseling agency today!
Contact an NFCC agency today for confidential help. Call 1-866-479-NEA2 (-6322) or visit www.debtadvice.org/nea.

NEA Member Benefits recommends the member agencies of the National Foundation for Credit Counseling (NFCC). These not-for-profit centers have provided low or no-cost financial counseling since 1951. All member agencies are certified by the Council on Accreditation (COA) and each counselor has passed an intensive course in credit and housing counseling. Unlike predator debt-solution firms, each NFCC Member is dedicated to setting your family on the correct path toward financial freedom. Local leaders are invited to contact NFCC offices to establish an ongoing relationship to address these important member concerns.