February 13, 2012 in Smart Money

Preparing for a job layoff

Editor’s note: This is a transcript of the audio file.

Losing your job is a tough blow. But with some advance notice, you can take steps to soften the impact a bit by doing some financial planning.

I’m Clark Palmer with your Bankrate.com Personal Finance Minute.

As soon as you see the first warning sign of job cuts, begin to keep track of your spending before the ax falls, and start cutting off what you can do without.

Take advantage of your health insurance benefits before they’re taken away. Make sure you are current on all medical and dental exams or any procedures you’ve been putting off.

Pay only the minimum toward your debt. When facing unemployment, it’s better to have cash than a lower debt.

Be aware of any 401(k) loan you may have, and try to pay off the loan if you’re facing a possible layoff.

Refinancing your home loan can also free up some cash if you qualify.

If possible, pick up a part-time job to supplement your emergency fund.

Consider a career backup plan if your job is being eliminated because of dim prospects in your industry.

For more career related information, visit Bankrate.com. I’m Clark Palmer.