Emergency checklist

When you lose your job, not only do you lose your income, you can also lose routine, friends and stimulation. But it is important to stay cool in a crisis and, to help you, we've put together a simple checklist of things you can do now to get on top of things:

1. Know your rights on notice and redundancy
2. Check your insurance
3. Manage your mortgage payments
4. Reduce your spending
5. Register at the Job Centre
6. Tell family and friends
7. Get a routine going
8. Explore your options

“Sometimes you eat the bar, and sometimes the bar eats you” - The Cowboy in The Big Lebowski

Know your rights on notice and redundancy

Before you accept a severance package, check that you are getting the best deal possible:

• Review your employment contract to see if your notice period is fair and if you are due any additional holiday or bonus payments.
• Check your legal rights. If your employer is “downsizing”, there must be a valid reason for your redundancy. If you think your redundancy is unfair, you can take your employer to an Employment Tribunal but you must apply for this within three months. If the business is insolvent, you can claim statutory redundancy but you must make this claim within six months.
• Negotiate with your employer to keep any benefits you can, such as car, computer, mobile phone, health insurance or gym membership.

Read about our users' experiences with their mortgage lenders on the 'Mortgage lenders - how helpful are they?' forum.

Reduce your spending

In a spreadsheet (or use pencil and paper if you prefer), list what you spend every month and what your income will be. In a separate list, itemise your debts and available cash. Armed with this information:

• If you have surplus cash, clear some debts, starting with the most expensive debt, like store cards, first. It is prudent to keep some cash in reserve if you can afford it.
• Reduce the number of direct debits you pay, but avoid cancellation penalties.
• Shop around for better deals on items like utilities and insurances.
• Change your spending habits.

If you don't have an online banking account, apply for one today, so you can keep a close check on your finances. See 'Money matters' for more advice on your finances.

Register at the Job Centre

Register at the Job Centre because, even if you don't qualify for payments, your national insurance contributions will be paid so your pension rights will not be affected in the future. You may qualify for Job Seekers Allowance (contributory or means-tested), and a wide range of other entitlements, including:

• Mortgage interest relief
• Rent assistance
• Council tax reduction,
• Free school meals
• Free prescriptions and dental care
• Education and training fees

You will need to show evidence that you are actively looking for work and must be prepared to accept any job offer.

To see what it's really like read our 'Job Centre experiences - how was signing on for you?' forum.

Tell family and friends

Don't put off telling your family. You cannot make the financial adjustments you need to make without them and they cannot help and support you unless you do. Telling your friends will help you put things in perspective and could prove useful in finding work.

Hear how others got on in the 'How to tell my family and friends' forum.

Get a routine going

Your daily routine probably disappeared with your job so you need to establish a new one. Get out of bed in the morning, eat properly and get some physical and mental exercise everyday. You rarely have enough time for things when you are working. Enjoy this time, and plan how to fill it with all those things you were too busy to do.

Explore your options

You might want to look for another job just like the last one, or perhaps this is an ideal time to change direction. Dusting off your CV will help you evaluate your current situation and might point you towards education and training, setting up a business, or taking time out to travel or do some voluntary work.