At a time where many businesses are closed, it has caused an increase in the amount of employees who are furloughed. In this blog, we will discuss what it means to be furloughed and what actions you should take if it happens to you.
What is a Furlough?
A furlough is an employer-mandated, temporary unpaid leave from work. Businesses will furlough their employees for any number of reasons as a way to save money, such as when economic uncertainty might necessitate it.
What Should I Do if I’ve Been Furloughed?
Apply for Unemployment
One of the first actions you should take if you have been furloughed is to apply for unemployment. At this current time, it may be challenging to receive unemployment due to the high demand, but it is important that you try. The amount of unemployment you may receive is determined based on your income and the state you live in.
To help save money, you can check with your utility services to see if they are allowing customers to defer making payments. It buys you some extra time to get the income to pay for these expenses. The next time you need to make a payment, call or look online to see if you are able to take advantage of this service that some companies are offering.
If you have federal student loans, you can also try to take advantage of the CARES Act to help stop those student loan payments until September 30, 2020. Additionally, there is temporarily no interest.
Keep a Budget
With a lack of income, you want to make sure you are keeping track of your spending. Make sure you aren’t overspending or building more debt. If you haven’t already done so, set up a weekly or monthly budget.
If you would like information on furlough loans with Camino Federal Credit Union, feel free to speak with one of our Member Advisors, visit us online at caminofcu.org, or give us a call at 800-835-3400.