Things to do financially before getting laid off

Been working for a big corporation for over 10 years. Rumours of layoffs becoming reality and coming in the next month. I was wondering what I need to take care of before that happens. I know loans would be impossible to get when unemployed. Have no debts or mortgage.

I have an unsecured credit line of about 15k at prime +1.5. Was wondering if I should increase that...maybe secure it with house to get prime or below prime. Any downside to increasing that? Credit rating issues? Already have 3 active credit cards. No balance.

Any other things I need to do before doomsday I need to do?

Start looking for another job?

I am in the same vote. I have till October.

Besides the obvious of getting another job, it sounds like you are already in good shape. Try to save what you can now, reduce where you can. I am sure being working for 10 years they should give you a decent severance so you will be fine for awhile afterwards and should give you enough time to find something else.

Look for another job, don't assume you will be with out income in a month.

Reduce expenses where ever you can, phone, cable, internet, hydro, no eating out until you know if you have a job or not etc. With no loans, mortgage or debt you should be able to survive for a while on your credit cards or your line of credit. What about EI for a little while? Thats what its there for.

Originally Posted by neospice

Start looking for another job?

Yes ... but wondering if it would be a good move to increase my credit line now that I still have a chance to.

Also anything else I need to do before the banks won't want to speak with you because you're unemployed.

Originally Posted by RedBargainz

Yes ... but wondering if it would be a good move to increase my credit line now that I still have a chance to.

Also anything else I need to do before the banks won't want to speak with you because you're unemployed.

Of course - get your line of credit increases or new credit cards BEFORE anything happens. if there's no annual fee, just get something and keep it sitting doing nothing until you need it

if you do get laid(off) then apply for EI Employment Insurance right away, since there is a waiting period, so the sooner you apply for it, the sooner you get it.

go to the dentist, doctor, get new glasses if you have a plan.

Originally Posted by st7860

Of course - get your line of credit increases or new credit cards BEFORE anything happens. if there's no annual fee, just get something and keep it sitting doing nothing until you need it

if you do get laid(off) then apply for EI Employment Insurance right away, since there is a waiting period, so the sooner you apply for it, the sooner you get it.

Yes, definitely set up any new credit you think you will need before you get laid off. You should check out health insurance options too. The company may offer something, like staying on the group plan.

If you will be getting a termination settlement from the company, don't waste a lot of time with EI - they don't kick in until after the termination settlement is used up. If you plan to find another job before then, dealing with EI will just waste your time.

With a 10 year severance, EI will indeed be useless to you, you'll likely get more than 50 weeks (the max) worth of EI payments.

Originally Posted by RedBargainz

Yes ... but wondering if it would be a good move to increase my credit line now that I still have a chance to.

Also anything else I need to do before the banks won't want to speak with you because you're unemployed.

Don't tell the bank that you've been laid off and you'll get that line of credit, loan, etc..
If they need to verify, just make sure you talk in advance with a colleague at work to vouch for you. Give the bank the extension of that person and you should be fine.

Originally Posted by RedBargainz

Been working for a big corporation for over 10 years. Rumours of layoffs becoming reality and coming in the next month. I was wondering what I need to take care of before that happens. I know loans would be impossible to get when unemployed. Have no debts or mortgage.

I have an unsecured credit line of about 15k at prime +1.5. Was wondering if I should increase that...maybe secure it with house to get prime or below prime. Any downside to increasing that? Credit rating issues? Already have 3 active credit cards. No balance.

Any other things I need to do before doomsday I need to do?

Sorry to hear about that. Wish i could offer you some advice, except perhaps maybe inquire in the career section about your skills? you never know when a fellow rfder might have a job opening in their workplace that fits your profile, you never know it's worth a shot. All the best

Edit: OH and i second that, strip your calling features, maybe downgrade your internet package to a lite, sell some stuff you have lying around the house (ebay, rfd, whatever gets you money) while all these measures may seem extreme, it helps to prepare for the worst. gym membership? scrap that. anything and everythiong, but yeah increasing the LOC would be good, I would shy away from the CCs just becuase of self control but if you have strong self control, you should be good.

Yup. Dentist, new glasses, get your back fixed (chiropractor, ...) if you have a plan. If it's a family plan, get new glasses for your wife too or kids.

Increase your line of credit too, just in case it stretches for a long time and cut yoru spending NOW. Stop your RRSP contributions (unless through the employer) to keep your money in the bank account unless you have a big cushion.

Resume RRSPs as soon as you find another job.

See if you can get a job letter from your current employer stating your current salary, position title, length of employment etc...

This will come in handy when applying for loans, mortgages etc...

Not sure how many females work in your company, but my suggestion is to see if you can get the names & numbers of as many hot female managers, co-workers, women with alot of influence and or secretarys and take tem out for a few drinks. You never know you might be abe to get one of them to put in a good word for you.

If you get to sleep with any of the managers that'd be a bonus as well, nothing wrong with sleeping with the boss to advance your career.
May as well get laid before you get laid-off.

careerwise, definitely start looking for a new job. you might even find a better job before you get laid off and leave on your own terms. write a list of everyone that you know professional or within your field. get on the phone

financialwise, do what you can to reduce your debt payments if you have any. it doesn't sound like you do, in which case you can ask for more available credit now before your job ends. it will be very hard to do if you ask for this without employment.

spendingwise, it would be a good idea to reduce your non-necessary expenditures. movies, eating out, etc. you'd be suprised how much discretionary spending you can cut out and build up a quick nest egg.

as other people have suggested, max out all your benefits (glasses, dental work, etc.). look for benefits like covering RMT's, etc. too.

you'll be ok - this happens to everyone.