Lost Your Job During the COVID-19 Crisis? 12 Moves to Make

For the past few weeks, COVID-19 has been battering the stock market and turning the U.S. economy upside down. And with companies large and small shutting down temporarily, many workers are suddenly finding themselves out of a job. If that's happened to you, here are a few key moves to make as soon as possible.

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If you have a solid amount of cash tucked away in your savings account, you may be better-equipped to weather this storm than anticipated. Take a look at your emergency fund and see how much money it contains. That alone will inform other decisions you may need to make, like which services to cancel as you grapple with an absent paycheck.

ALSO READ: Emergency Funds Are Vital. Here's Why.

Self-employed individuals can't file for unemployment, but both salaried and hourly employees who get taxes taken out of their wages can. Eligibility for unemployment varies by state, and generally, those benefits will replace less than half of your paycheck, even if you're a low to moderate earner. But it pays to file a claim quickly and put some income in your pocket while you're out of a job. Also, you're allowed to claim unemployment even if your layoff is temporary in nature -- say, you work for a restaurant that's shut down right now, but may open again once the COVID-19 crisis subsides.

If you were entitled to paid time off through your former employer, you may be eligible to cash out those days and collect a lump-sum payment. Ask about this option if it's not presented to you, especially if you know you've accrued unused time.

These days, a lot of the gigs you could normally pick up to replace a lost paycheck aren't all that safe due to COVID-19 concerns. For example, signing up to drive for a rideshare company isn't the best move right now. But one thing you can do is look into work that’s doable from home -- work like online billing for medical offices, web development, or tutoring (schools are closed all over the country, and many parents will no doubt want the extra help).

We all have expenses we have no choice but to bear, like food and housing. But if you're out of work, immediately comb through your budget and start identifying those expenses you can cut back on or eliminate altogether. These may include subscription boxes, cable TV (streaming is often cheaper), and home maintenance services you can do yourself rather than outsource.

ALSO READ: How Consumers Are Spending Their Time in Self-Isolation

Many mortgage lenders are allowing unemployed homeowners to defer their payments temporarily due to COVID-19. If you go this route, you'll still need to make those loan payments eventually -- but you won't have to make them immediately if that's not financially doable. Contact your mortgage lender to see what options are available to you.

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Losing your job could mean struggling to make rent in the coming months. If that's the case, talk to your landlord right away and see if he or she will agree to a lower payment temporarily. Unlike mortgage lenders, some landlords can't afford to not get paid right away, so don't be surprised if your landlord doesn't let you completely off the hook. But chances are, your landlord will agree to accept, say, half of your monthly rent for the time being while you're out of work.

If you're on the hook for monthly student loan payments, here's some potential good news: The U.S. Department of Education just announced that it will allow all borrowers who request forbearance to suspend their federal student loans payments for 60 days. During this time, no interest will accrue on your loans. If you need this option, contact your loan servicer -- you shouldn't get any pushback. And if you borrowed privately for college, reach out to your lender and request relief. Chances are, you'll get some leeway with those payments.

Try as you may to cut back on certain expenses, you still need electricity, heat, and water to function. If you can't pay those bills, contact your utility providers and ask for temporary assistance. Many are already in the process of reassuring customers that their service won't be disconnected due to a lack of payment in the coming weeks.

ALSO READ: Americans Worry More About Paying Their Bills Than Catching Coronavirus

Making your monthly auto loan payments may prove difficult now that your paycheck is gone. If that's the case, reach out and see what your options are. You may get the option to defer some payments, or at least pay less on a temporary basis without having your vehicle repossessed.

If you're carrying credit card debt and can't make your minimum payments, talk to your credit card company about your options. You may be allowed to skip a payment or two without having it negatively impact your credit score.

If you don't have emergency savings and aren't eligible for unemployment benefits, you may have no choice but to borrow money to cover your basic bills for the near term. If that's the case, aim to borrow as affordably as possible. If you own a home, a home equity loan or line of credit is generally your best and easiest bet. If you're a renter, see about taking out a personal loan, which you may qualify for if your credit score is in decent shape. You can also ask your credit card companies for a higher credit limit, but keep in mind that racking up a larger balance should really be your very last resort.

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