Sudden Job Loss and Needing Money Fast

Unemployment benefits are processed relatively quickly, but there is still a time frame where the unemployed sit without incoming monies. What can you do until you get your first unemployment check? Well, first and foremost, don’t panic. Calm down. A mind that is in panic mode is incapable of rational thinking. After grasping and accepting the situation, sit down with those you love to discuss your course of action. A job loss in a household affects every member of that household.

With the rent or mortgage payments looming, utility companies needing to be paid, car payments, credits cards, and many other recurring debts, the quest in finding monetary sources can be daunting.

Avenues to Making Money Fast – Legally

The following list identifies resources for those occasions when money is scarce and fleeting.

  • Have a yard sale. Every American household has something somewhere in their home of which they no longer use, forgot was there, or have simply outgrown. The popularity of yard sales has greatly increased during these difficult economic times. Many families are in similar situations and look for bargains on gently pre-loved clothing, which will help stretch every dollar.
  • Borrow money for the short-term from friends or relatives, but always pay it back to preserve your relationships. It is wise to handle these transactions as regular business transactions by completing a written agreement with your friend or relative to stipulate all conditions of repayment. This will ensure that both parties are in agreement based on the terms of the loan.
  • Sell your second car. When finances are tight, why saddle what little budget exists with a car payment, insurance, and maintenance costs when one vehicle can be shared? The monthly savings can easily be substantial. According to Mark Solheim of Kiplinger’s Personal Finance Magazine, the average monthly vehicle loan payment in the U.S. is $479.00. Plus, add the cost of insurance, fuel, and maintenance, and the total cost can easily equal a house payment. Put the saved monies into your pocket, not the auto loan company.
  • Advertise to sell unwanted items on Craigslist, e-bay, or the local city classified ads.
  • Sell your gold and other jewelry. There are on-line and fixed location companies that advertise to buy gold and other precious metals.
  • Pawn some items. I only recommend this option after exhausting every other possibility. Pawn shops have negative reputations regarding their business practices of providing collateral loans at up to 25% interest rates. The typical loan is between 30 to 60 days whereby the original loan amount plus interest will be due and payable. If the items are not redeemed within that timeframe, ownership of the collateral reverts to the pawnshop.

When the sudden loss of a job occurs, the recently unemployed must act quickly to preserve their finances. Begin by applying for benefits of which you qualify, communicate with your family members, and let go of unneeded materialistic items to have an additional source of money to use.