Survival Tips for the Long-Term Unemployed
One of the biggest problems facing Americans is the prospect of long-term unemployment. Recently the number of first time applications for unemployment insurance rose by 24,000 pushing the number of initial requests for unemployment insurance to 484,000. Many of those unemployed Americans will eventually join the ranks of approximately 5.97 million people nationwide receiving extended unemployment insurance benefits.
But what will happen to those millions of Americans when their benefits expire? What will happen to you if you face years of unemployment? Employers are still holding back on hiring and many economists predict that hiring will not pick up again for years to come.
Below are few financial survival tips that could help you or your loved ones survive long-term unemployment:
Minimize Your Lifestyle
During the boom-times, everyone was looking to upgrade their lifestyle, bigger house, better car and more stuff in general. But with the high rate of long-term unemployment amongst us, it is time to downsize everything. Consider selling your home, trading down your car and cutting your expenses drastically BEFORE you receive a pink slip.
Eliminate Your Debt
Nothing sinks an unemployed person faster than massive amounts of debt. One of the leading causes of stress for long-term unemployed Americans is their inability to pay their debts. If you are currently drowning in debt, consider paying down your debt or if you can't do that, file Chapter 7
or Chapter 13 bankruptcy
. Bankruptcy can minimize or eliminate your debt, reducing the amount of stress you experience while unemployed.
Diversify Your Skills
Many unemployed individuals are finding that they need to go back to school to learn a different trade because their industries have been decimated by the economic crisis. If you are currently employed or even if you are not employed, invest in learning a skill within the industries that are still thriving. You will be less vulnerable to long-term unemployment if you are willing to learn new skills and work in a different field.