I Just Got Laid Off. How Do I Stay Financially Afloat?

Getting laid off can make you feel scared, disoriented, overwhelmed, and confused all at once. The floor feels like it's swaying under your feet, and the staggering effect can make it hard to figure out your next step. Everyone is telling you to take a deep breath and relax, but how can you stay calm when you don't know how you'll pay the bills?

Instincts might be kicking in, telling you to start job hunting immediately. But before you take that important step, the following three are crucial to keep your personal finances afloat.

Apply for unemployment

Unemployment insurance can replace all or a portion of your regular pay on a weekly basis. Each state has its own minimum and maximum benefit coverage, will pay out for a limited period, and will require various tasks for your benefits to stay active. For example, in my current state, Oregon, you can receive a weekly benefit of 1.25% of your former annual gross earnings (up to $783 per week) for 26 weeks, so long as you're available to work and actively seeking employment.

If you can, apply for unemployment immediately after getting laid off. Agencies can take a few weeks to process claims, so it's best to get started as soon as you can. To apply online, here are a few things you’ll need:

• Your previous employer’s contact information
• A recent pay stub
• Any tax documents from the most recent tax season.

Keep in mind that if you have moved states in the last year, you may need to file with the state you previously worked in.

Secure short-term financing

Your weekly benefits may not be enough to cover your budgeted expenses. If that's the case, you might need to get low-interest financing, which can help you pay bills without sinking you in too deep. It's important to stay away from predatory loans. Here are a few financing options you might want to consider:

• 0% APR credit cards: These credit cards come with an introductory period of 0% APR, so you won't pay interest during that period. This is a good option if you're confident you can find work before the intro APR period ends. Once it does, your card will revert to a higher APR and you'll have to pay interest on money you borrowed.
• Home equity loan: If you own your home and have equity in it, you could borrow against it with a home equity loan. These loans typically have lower interest rates than credit cards and give you a longer payback period. The drawback is that you're putting your home up as collateral, meaning if you don't pay off the loan, your lender could repossess your home and sell it to recoup the loss.

Ask for relief

Finally, don't hesitate to contact your bank, credit card issuers, utility providers, landlord, or other lenders to explain your situation. Many are likely willing to work with you on payment defaults or fee waivers, or offer some other kind of financial assistance. Credit card companies, for instance, offer hardship programs, while mortgage lenders may let you temporarily pause loan payments without defaulting on your home (also known as mortgage forbearance).

It's not easy getting laid off. You might have to incur some debts, or sell things to cover your budget. But you can minimize the financial damage -- and keep a clear head -- by applying for unemployment, asking your lenders for relief, and borrowing money on low-interest loans and credit cards.