While you may not look forward to going to work every morning, it does provide the income that you need to make the mortgage payment. However, if you are out of work, it doesn’t mean that you should immediately look to sell the family home. Obviously, the best solution would be to plan ahead and pay into an emergency fund which optimally would cover 6 months of living expenses. But what if you weren’t that farsighted?
Here are some ways to manage the mortgage payment until you can get back to work:
1) Apply for Unemployment Benefits
The first thing to do when you become unemployed is to apply for unemployment benefits through your state unemployment agency. Often it takes time to be eligible for benefits or to wade through all the “red tape” before you actually get your benefits. So it pays to start early. Unemployment benefits vary by state with high cost states like Massachusetts paying as much as $993 per week for 30 weeks. But most states limit benefits to a maximum of 26 weeks and pay less than $500 per week. Note: While you are collecting unemployment benefits might be a good time to acquire new skills that make you more employable. See: Highly Skilled Worker Shortage in a Recession?
2) Call the Lender
The next thing that you should do is [Continue reading]