Money while you're out of work: first steps to take
By the RollHound team · Updated · 2 min read
The short answer
File for unemployment benefits with your state right away, sort out health coverage before your old plan ends, list your essential monthly costs, and contact lenders early if you'll have trouble paying. Free help is available through CareerOneStop, 211 and your local workforce center.
Key takeaways
- Apply for unemployment insurance as soon as you're eligible. Delays can cost you weeks of benefits.
- Losing job-based health insurance lets you enroll in a new plan outside the usual window.
- Cover essentials first: housing, utilities, food, insurance and transportation.
- Call lenders before you miss a payment. Many have hardship options.
File for unemployment right away
In the US, unemployment insurance is run by each state. Apply through your state's unemployment agency as soon as you lose your job; you can find it through CareerOneStop, a site sponsored by the U.S. Department of Labor. Eligibility, payment amounts and weekly job search requirements vary by state, so read your state's rules carefully and keep a record of your search activity.
Sort out health insurance
- Find out exactly when your employer coverage ends.
- Ask about COBRA, which lets you keep your employer plan for a time, usually at full cost.
- Compare it with plans on HealthCare.gov or your state's marketplace. Losing job-based coverage usually opens a special enrollment period, and lower income may qualify you for savings.
- Check whether you or your children qualify for Medicaid or CHIP.
Build a lean budget
- List your essential monthly costs: housing, utilities, food, insurance, transportation and minimum debt payments.
- Add up your income: unemployment benefits, any severance, a partner's income.
- Pause or cancel subscriptions and anything non-essential for now.
- Work out how many months your savings and income will cover, so you can plan rather than worry.
Talk to lenders early
If you expect trouble paying a mortgage, rent, car loan, student loans or credit cards, call before you miss a payment. Many lenders offer hardship programs, deferments or payment plans, and federal student loans have options for borrowers who lose income. A non-profit credit counselor can help you weigh choices.
Where to find help
- CareerOneStop: unemployment benefits, training and local job centers.
- 211: call or text 211, or visit 211.org, to find local help with food, housing, utilities and more.
- Your local American Job Center or workforce center: free job search help and training programs.
- Food banks and community organizations near you.
This is general information, not financial or legal advice. For decisions about your situation, talk to your state agency, a non-profit credit counselor or a financial professional.
Common questions
How soon should I file for unemployment?
As soon as you lose your job. Benefits generally start from when you file, not when you were laid off, so waiting can mean losing money. Your state's unemployment agency has the rules for your situation.
Can I get unemployment if I quit?
It depends on your state and the reason. Some states pay benefits when you quit for good cause, such as unsafe conditions. Apply and let the agency decide rather than assuming you're not eligible.