Posted under Budgeting
With each day that passes in these recessionary times, more and more people from Kitchener-Waterloo are finding that they or someone they know are being laid off. These layoffs may be short-term, a few months, or even permanent. This unexpected unemployment can have a major impact on the family budget. A big part of our demand for money is fixed, that is we have expenses to pay each month regardless of how much we make, such as mortgage/rent, utilities, car payments and insurance, groceries, etc. We have some variable expenses that change with each month but these make up a smaller part of the budget.
A few years ago, if someone was laid off, there where various other employment opportunities available. Today, we find unemployment rates increasing. Further, those that still have jobs are seeing decreased income with a potential scale back of overtime and even some concessions in cutting hours overall. This overall reduction in income (no matter what the cause) is the leading cause for people contacting our office right now.
These cases of unexpected unemployment or reduction in income can only be sustained for the short-term. The banks are tightening up on their lending and doing fewer consolidations. If an individual already has various credit card and lines of credit debts, then there may not be funds available to pay these debts plus all the other fixed costs we have. This all can lead to a time of overwhelming stress which affects all aspects of life. We need to make a PLAN to deal with the situation and reduce this stress.
If you find yourself having trouble keeping up with your situation due to an unexpected unemployment call me at 310-PLAN (or send an e-mail) and we can make a PLAN with you.
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