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Tips for Financial Recovery After a Job Loss


Photo of a person holding a box full of office items

Losing a job can be a traumatic experience, bringing not only financial consequences but emotional distress to those who have been fired or laid off. However, even though recovering from such times can be difficult, there are things you can do to help you regain control of your life. In this blog, we are sharing smart strategies that you can try to recover after a job loss in Canada. 


Create a New Budget

The first thing to do after losing a job is create a new budget based on what you have available. It is important that you figure out your finances at this moment as finding a new job can take time. Check with your employer’s human resources if you will be offered a severance package that can help you have a source of income until you find a new opportunity. Take the time to calculate how much you still have available in your bank account and reevaluate your financial situation. Your new budget should accommodate only the necessary and non-negotiable expenses you have now.

 

Prioritize Payments

Another strategy you can try is to prioritize payments. Ideally, you should be able to pay all your bills and expenses, but delicate situations may require you to consider those which are more important. This includes mortgages, insurance, car loans, and bills. For credit cards, it is fundamental that you pay at least the minimum your bank is charging. Though you will be paying more interest in the long run, it is a better option than missing the payment entirely, which can significantly impact your credit score.

 

Apply for Employment Insurance

If you lost your job through no fault of your own, the government may grant you with a weekly benefit that corresponds to a percentage of your previous income. It can greatly contribute to your financial recovery, providing you with extra time to find a new job. You can find the eligibility criteria for Employment Insurance benefits in Canada in the government E.I. platform.

 

Begin to Search for a New Job

As soon as you have created a new budget and reevaluated your finances, it is fundamental that you start looking for a new job. This can be a time-consuming process but the sooner you start, the higher the chances of getting back on track. Set up a time to regularly and actively look for a new job, adapting your resume according to each job opportunity you are applying for.

 

When it comes to job searching, it is also important to think outside the box. Emergency situations may require you to consider freelance, gig work or part-time positions that may not pay you what you expect but can provide you with the extra time you need to find a more interesting position.

 

Licensed Insolvency Trustee Ottawa

If you are going through financial difficulties and need professional assistance to help you get back on track, D. & A. MacLeod Company Ltd. is here for you. Through efficient credit and debt counselling, we can help you find a new beginning in Ottawa. Don’t hesitate to give us a call and let us help you regain control of your life. Reach out to us.

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