To-do list for building stability after a job loss
Jump to the sections below to see actions you can take.
File for unemployment
Unemployment rarely replaces all your income
Unemployment is typically a weekly payment of a few hundred dollars. The payments are considered taxable income.
Unemployment is generally for people who have been fired
People who have been laid off or whose jobs were eliminated can generally qualify for unemployment. You generally cannot file for unemployment if you chose to resign from your job or if you were fired for misconduct.
File for unemployment in the state where you worked, even if you live in a different state
Filing can be complicated. You can check with your public library or contact a local elected official for help. To get started, try:
- A state-by-state list of unemployment insurance contacts from the Department of Labor
- CareerOneStop with information about unemployment benefits in your state
Use our worksheet for ways to increase income and benefits
Take care of your health insurance
You have the right to continue health insurance at your own expense
Under federal law, most people who work for companies or governments with health care benefits can continue their coverage. However, they must pay for it themselves. You might see it called COBRA , after the federal law. For federal government workers, it is called temporary continuation of coverage . Coverage can be expensive because you now pay your share of the health care premium as well as your employer's share, plus an additional 2% for administrative costs. But you can choose a different health care option than you had while you were working.
Get more details about COBRA from the Department of Labor
Job loss is a life event that allows you to make changes
Losing your job is considered a "life event" that generally means you can enroll or change health care coverage outside the usual enrollment period. For example, if your spouse has health care benefits available, you can be added to their employer's health care plan.
Enroll in Affordable Care Act health insurance
You can sign up for health insurance on your own in the health care marketplace. Start at healthcare.gov to compare plans and coverage.
You might qualify for Medicaid and CHIP
Medicaid and CHIP are nationwide health care plans available to those who qualify because of low income. Learn more about saving money on health insurance through these plans.
If you go without health insurance
People who are uninsured, even temporarily, can still get care from medical providers. Be sure to get the care you need, especially in emergency or urgent situations. Ask the hospital or medical provider for help with bills you can’t manage.
See more about getting help with medical bills
Take care of your rent or mortgage
Struggling homeowners should contact their mortgage servicer
If you can’t pay your mortgage or are worried about missing a mortgage payment, call your mortgage servicer right away. The servicer might be able to offer you options that include forbearance, refinancing, or loan modifications.
Use our guide for steps to take and how to contact a mortgage servicer
Struggling renters should look for local programs and talk to landlords
Renters can check local rental assistance programs and start the conversation with landlords about ways to pay rent and avoid eviction.
Use our guide if you’re having trouble making rent payments
Housing counselors can help
U.S. Department of Housing and Urban Development (HUD)-certified housing counselors can discuss options with you, at little or no cost to you, if you're having trouble paying your mortgage or rent.
Use our guide to stay on top of housing issues you might face
Deal with student loans
Contact your loan servicer to reduce your monthly payments
Federal student loan borrowers may be entitled to lower monthly payments under income-driven repayment (IDR) plan options that base your monthly payment on your income and family size. For some borrowers, your payment could be as little as $0 a month and you would continue to receive credit toward IDR loan cancellation.
Check the Department of Education’s income-driven repayment plan guide
If you're going back to school or training, you might qualify for an in-school deferment, which means you do not have to pay your loans while you’re going to school.
Check the Department of Education’s in- school deferment guide
For private student loans, contact your servicer and ask them about options to reduce or pause your payments.
Check the Department of Education’s resources on student loan repayment
Get a handle on your bills
Request help from lenders and financial companies
When your employment or money situation changes, you should contact your lenders and companies where you have accounts and ask for help. For example, you could request more time to pay your bills or ask them to waive a late fee.
Use our bill calendar to create an overview of due dates
Use our worksheet to prioritize your bills
Take charge of credit cards and other bills
After reviewing your budget, determine how much money you have available to pay bills and debts. If you can’t make your credit card payment or other bill payments, contact the company to see if they can offer more affordable repayment options.
Your lenders might be willing to work with you, so be proactive to avoid extra expenses, fees, and actions that could hurt your credit score.
Take care with automatic bill payments
In stressful times, it might be tough to keep track of payment deadlines or automatic bill payments. This can lead to overdraft fees. Contact your bank, financial institution, or lenders quickly if you need to stop automatic payments or if you will miss a payment.
Watch over your spending
Examine your income and spending
Understanding your household finances begins with getting a clear picture. Look at your debts, savings, and any severance package to understand your money situation. Be sure to include your partner and anyone who contributes to your household.
Use our cash flow worksheet to keep track of your income and expenses
Take a fresh look at recurring services and subscriptions
There could be items you can cancel, like refills for public transportation. You might choose to cancel a streaming service or gym membership—or you might keep it because it’s important to your routine.
Use our worksheet to look for ways to cut back on expenses
Keep an eye on your credit
Check your credit report online
Losing your job can lead to unexpected issues with your credit reports or scores. For example, arrangements you make with lenders or credit card companies to make your payments more affordable may not show up correctly on your credit report.
You can get a free credit report from each of the three nationwide credit reporting companies (Equifax, TransUnion, and Experian) at least once every 12 months. Until the end of 2026, you can get an additional six free credit reports every 12 months from Equifax. When you visit the site, you can follow the steps to view reports online, updated weekly. This means that you have opportunities to request reports, monitor your credit, and ask for any errors to be corrected. You can request a copy of your credit reports through AnnualCreditReport.com .
Check your other consumer reports when you have time
You also have the right to request other types of reports . These include tenant screening reports, bank or checking accounts, and personal property insurance reports.
Consider your retirement savings
You might be thinking about using your retirement savings to see you through an unexpected drop in income. No matter where you are in your career, there could be consequences to dipping into this money. Consider the tradeoffs carefully, especially because once you take a distribution from a retirement savings plan, you cannot undo it. You know your own situation best, so think through your options and take the action that helps you meet your life goals.
Using 401(k) savings
For workers who have 401(k) accounts, it can be tempting to withdraw the money and use it for bills and spending. Keep in mind that withdrawals from before-tax savings are considered taxable income. This means that the amount you withdraw is added to your taxable income for that year. An automatic 20% is withheld from the withdrawal amount for your federal taxes. Depending on the state where you live, you could also owe state and local income taxes. If you are under age 59 ½, an additional 10% penalty tax applies – though there are exceptions.
Consider the effect of withdrawing your retirement savings on your long-term financial health. You might have to save more – maybe a lot more – from your future paychecks to stay on track for a stable retirement.
Consider the costs of piling up debt. In some situations, using your retirement savings might help you avoid expensive loans or damaging your credit score.
Review the information you get from your employer and your 401(k) company, to understand your options.
Tapping into Social Security
Most people can take a full Social Security benefit when reaching age 66 or 67 (depending on your birth year). The amount is permanently reduced if you choose to start Social Security earlier, as early as age 62.
Use our Social Security tool to explore what happens at different ages
Survival tips
Gather your documents
If you can, take time before you leave your job to save copies of your work documents. It can be useful to save documents about your position, your responsibilities, your pay, and your performance ratings. You could also collect phone numbers or email addresses for people you want to stay in contact with.
Use your networks
Colleagues and others who faced layoffs and terminations can have valuable experiences to share. People you are connected to could also help you find a new job. Ask questions and share your information to build your resilience and resources.
Clarify money arrangements with friends and family
It is natural to turn to people close to you for help when you need it and to want to help others. Still, borrowing or sharing resources can lead to stress if expectations are not made clear. Use our guide to have productive conversations about informal money arrangements so you can keep your important relationships stable.
Watch out for scams
While many people pull together during times of crisis, there is also an increased risk of scams and fraud. To avoid scams, ask questions to determine if a phone message, text, or social media post is real.
Red flags to watch out for:
- Job-related messages that ask you for personal data, require you to pay fees, or lead you to download unfamiliar software or apps.
- People who want you to pay up-front fees to help you claim services or benefits, search for jobs, or get loans.
- Con artists with fake credentials or uniforms, posing as government employees, insurance salespeople, law enforcement officials, or bank employees. Do not give out personal information to people you don’t know or someone who contacts you unexpectedly. Government employees do not charge to help you get a benefit or service and do not ask for payment or financial information.
- People pressuring you with urgent situations or limited time offers, trying to get you to decide on the spot or to sign something without enough time to review it. Take your time reading and understanding anything presented to you. And ask a trusted friend, relative, or attorney before acting.
- Recruiters or employers who can’t or won’t answer your questions are a sign you might want to look for someone else to do business with.
Here are steps you can take to recover from losses because of a scam or fraud:
- Contact your state’s attorney general: Your state attorney general might be able to take action.
- Submit a fraud report to the FTC: Although the FTC cannot resolve your problem, when you submit a fraud report , it is shared with more than 2,800 law enforcers, and reports are used to investigate and bring cases against fraud, scams, and bad business practices.