Many people have experienced the devastation of job loss.It can be paralyzing to the person for any number of reasons and the biggest problem to overcome is the stigma most people attach to it.Today, job loss can be for any number of reasons none of them the fault of the employee but still they carry that stigma.
The first thing someone leaving a job should do is ask for a letter of recommendation; not a letter of reference but recommendation.The higher up the ladder you can go to get it the better.This should go to your portfolio.As a psychological boost this in and of itself can be a significant boost to getting back to work.
Still there are the realities of dealing with finances.The first obviously is to get registered for Employment Insurance.Once that is done, sit and work out a new budget, one that cuts all of the fat.There is no room even for dinner at McDonalds.Make sure it is realistic though and get it all on paper.Then and only then should you call and make an appointment with your banker.You need to do whatever you can to pinch money and that means restructuring your debt.Your banker can help you with this but there is a sinister side to it.Those behemoths we call banks have a hundred arms and hands and they don’t talk to one another.
If you have a mortgage that you have been paying weekly or bi weekly and now need to go monthly with a reduced payment you could be in for a major battle.Remember your branch is only a go between.The real decisions are made by faceless corporate minions who only know rules.They don’t know you and they don’t care. Their jobs are to enforce the rules and those rules can bite you.
So you and your banker work out a strategy and then change the terms of your agreement.You breathe a huge sigh of relief.You bought several weeks of grace and will still be able to keep it all.The house is safe, the family is safe and you feel a huge pressure lifted; that is until the next day.Now you get a call from another division of the bank telling you that you are now overdue in your payments and they want their money and they want it now.Failure is not an option because according to the rules they have to start foreclosure proceedings.Your world just caved in.
Your best approach is to be proactive.Before you go to your own bank, go elsewhere and shop for a new mortgage.Get pre approved then go to your banker.Make sure they understand that you have plan B.Remember, this is a business arrangement and the bank can choose to do business with you or not.If not, you are covered; If so, they keep a loyal customer.If they continue their rhetoric of loan demand then you make sure NO penalties will be applied for paying it off early.They are making the demand so you make sure you are covered.
Think it all sounds far fetched?It isn't.It is past personal experience of this writer.