Losing your job is a problem almost everyone faces at one time or another during their life time.  It is a two-pronged problem as it could mean the loss of all or half of your household income that has you looking for a new job while attempting to manage all of your debt at the same time.  Finding a new job is the priority, but everyone should be prepared financially - if possible - for all eventualities.  With the current global financial crisis affecting the world and the job market, it may take you longer to find a job than you expect. 

So how exactly do you handle paying your bills if you should become redundant? 

1.      Create a new budget that is based on your existing monthly bills and your new household income.  Make sure you list all of the bills that need to be paid and include cost of living items such as food, petrol to get around town to find a new job, and medical needs such as medicines.  Prioritise your bills so that you are paying the essential bills first - rent, mortgage, utilities, council taxes, car payments, etc. - and then the non-essential bills.

2.      If you are eligible for redundancy insurance, claim it especially if you are let go from your job suddenly.  This will help you pay your debts even though it will only be a partial amount of what you were earning.  Any money that you can get towards paying your bills will help.

3.      Immediately notify your creditors and lenders of your redundancy situation.  Include all of your creditors - especially your mortgage holder - so that they can help you make arrangements to pay your bills.  Many times your creditors and lenders will offer you lower payments that you can make with the money you have coming in with the agreement that regular payments will resume when you get a new job.  Don't be afraid to call them or hope that you will be able to find a job quickly.  You do not know what is going to happen or how long it will take you to get a new job and you do not want to lose your homes.

Most creditors are willing to work with you when you have been made redundant.  Just because the local fast food restaurant is hiring doesn't mean you will be able to get a job there to hold you over.  You do not want to put your home or your vehicle in jeopardy.  Plus, it costs your creditors money to chase down payments or to take you to court.  With the financial economy being what it currently is, they'd rather save some of their own money and wait for yours. 

You can also help keep your budget on track by finding alternative ways of saving money.  Use public transportation to get to job interviews or even walk if it is close enough.  This will help save money on petrol as well as wear and tear on your car.  If you pay for television services such as cable, consider letting them go until you can afford them again.