Unemployment benefits do not last forever. Generally, they will only last for twenty-six weeks, which is six months. However, many states offer extensions on the benefits when the unemployment rate is higher than normal. In order to continue to receive your benefits you should be applying for work each week.
As soon as you lose your job, you need to sit down and create a new budget. This budget should cut out all of the nonessentials and luxury items. You should cancel unnecessary services such as cable or a gym membership and scale it back. Although, you may receive a severance package and unemployment benefits that currently meet your regular needs, you will want to make your savings and other money last as long as possible. This is in case your benefits do run out in the future.
If you are close to losing your unemployment benefits, then you need to create an action plan to fall back on. This means an even tighter budget with additional plans on what to do for housing, to cover your car payment and other expenses. If you are renting, you may try to get out of the lease and explain that you are unemployed. You may choose to have a roommate come into help share expenses or you may choose to move home temporarily while you look for work.
Additionally, you may consider picking up part time or temporary work to help you out while you are continuing to search for a job. You may begin freelancing in your field and discover that you can make a lot of money doing that. You may also find that you can pick up odd jobs to help supplement your income. Once your unemployment benefits have run out you should really consider taking a temporary job or waiting tables. This can save you from being turned out on the street or from going hungry.
If you have a spouse that is working, you may be able to make ends meet a bit longer, but it is essential that you cut back as much as you possibly can. You should continue to look for work on a regular basis and utilize your networks to help you find a job. It is easy to become discouraged in a difficult job market, but eventually you should be able to find a job. Considering expanding the field that you are looking in, as well as the geographical location. You may be able to find a great job in a different state or city.
If you are unable to make your monthly payments you should contact your creditors. Your student loan can be put on deferral if you are unemployed, and you should do this as soon as you lose your job. While your creditors can still report you to collections when you fail to pay, you may find additional help or assistance while you are unemployed if you contact them. Some credit unions will let you skip a car payment and extend the loan by a month in special circumstances. Mortgage companies may have a similar program available. If you are proactive you may be able to save your credit while you struggle through this.