Surviving a Job Loss in Tough Times.

Byline: Amilda Dymi

Needless to say, it never is a good time to lose your job. In the current market, however, one of the major fears faced by homeowners at risk of foreclosure or not is downsizing and layoffs.

The unemployment rate keeps creeping up. In December, it jumped to 7.2%. Over half a million (524,000) people lost their jobs, and according to media reports is the highest level in 16 years. That is why counselors stress the need to be prepared for the worst and understand the risks of related emotional and financial strain.

"Stalwarts of the American economy have laid off workers by the thousands. Financial setbacks are never easy, but with help, most can survive unscathed," said Gail Cunningham of the National Foundation for Credit Counseling, Silver Spring, Md. "Reaching out to a trained and certified credit counselor can be one of the smartest steps a person can take during times of financial distress."

NFCC job-loss surviving tips start with the sensible advice to allow oneself "to be upset or even afraid," since these are natural reactions that hopefully do not become so intense that professional help is necessary. Hearing another person's perspective can bring relief, and a positive outlook.

NFCC suggests the first step should be to consider all assistance options, such as getting references for a future job, taking advantage of any workplace assistance available such as placement assistance, job retraining and severance packages. The human resources representative at work can also be a good resource of information on applicable government benefits.

The psychological aspect is as important. "Resist the urge to solve your problems by spending recklessly. Don't be tempted to live off of your credit cards." It is tempting for someone with a good line of credit to support the family at their current standard of living by using credit, but nobody can predict how soon a new job will come along. NFCC experts have calculated that job seekers should expect ...