A checklist for people who might be laid off, but then again might not
Secure your home; be sure to refinance when interest rates fall to minimize your monthly mortgage payment so as to avoid doing business with car title loans Atlanta. And consider taking a 30 year loan for its flexibility. To some borrowers, that’s surprising advice. A 15 year loan costs a lot less because of its lower interest rate and because you’ll repay it in half the time. But you’re locked into higher monthly payments – not a good idea if your job is at risk. So follow this strategy instead: Take a 30 year loan; make larger monthly payments than the bank requires (in fact, pay as if you had actually taken a 15 year loan); if you keep your job, you’ll get rid of the mortgage early; if you lose your job, you can cut your monthly payment to the minimum level that the 30 year loan requires.
Secure your life insurance; your company may give you up to $50,000 of free term insurance, plus the option of buying more through payroll deduction. But you generally can’t take that policy with you when you leave your job. If you should become uninsurable, you’d be stuck with converting your company policy into an individual one – and believe me, that doesn’t come cheap. It is smarter not to buy extra coverage through payroll deduction. Use that money to buy insurance outside the company, which gives you a policy you can keep no matter where you work. The outside policy might even cost you less.
Your consumer and home-equity credit; open a home-equity line of credit if you have home equity, but don’t borrow against it. This will become your safety net if you’re fired and need quick cash. If you already have consumer debt, start a ferocious plan to get rid of it. You don’t want to face stiff home-equity and credit-Card payments if you’re out of work.
Your ready savings; the rule of thumb calls for having 3 to 6 months’ worth of living expenses in the bank. But that can be dumb if you’re also carrying credit card debt. Say that your debt costs you 16 percent while your savings account and use it to pay down that expensive debt. Then keep your credit cards and home-equity lines clean. If you’re fired, you can always draw on your credit lines again. Those are your true emergency funds just like those you can obtain when you require the help of a business like car title loans Atlanta.
Write something about yourself. No need to be fancy, just an overview.