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Coping with the pink slip

Larissa Fernand

Yes. We are actually talking about what you should if you do get sacked. Most people don't think much about it till it happens. And then, they are too shocked to react. In case you have landed in such a spot, read on.

• Tell your family about it. Immediately. You will have to start cutting corners and you will need your family members to also do so, specially if you are the sole bread earner or the main bread earner.
• Take stock of all your liabilities and see where you can cut down. Of course, you can't cut down on food but you can do away with the 'goodies' or with the imported cheese. Entertainment will have to drop.
• Take stock of all your assets to see if you need to sell any. Will any of the debentures be maturing in the near future? Till then would you need to sell some shares to see you through. Don't consider selling your house in a hurry. You may never be in a position to buy one again. Instead, you could move to a cheaper location and rent the current home.
• Look at various sources of income that you may be getting. Are you getting rent from somewhere which will help pay off all your bills? Any income scheme which assures you of a regular return?
• Don't stop any payments on housing loans or insurance. You may end up losing your home and, if you fall sick, then you will not even have a medical insurance to see you through.
• Stop using your credit card. And if you do, then make sure that you settle all bills at the end of the month. If you decide to carry over payments in the hope of getting a job in the near future, you are walking on a thin rope. If the job does not materialize, your debt will mount fast.
• Don't take any loans. Don't think of going in for a personal loan to make ends meet. Anyway, you won't get one if you don't have a job. If you are desperate for cash, try and take loans from your assets. You could explore options like a loan from your public provident fund (PPF), provident fund or insurance policy. You could also use your house as a mortgage but that would be a more expensive method.
• And do file your returns. It could be that you were sacked mid-way through the year, so the tax man will want an account of your income till then. Make sure you sit with your accountant to ensure that you don't have any taxes to pay. And, if you do, please pay them. Of course, this is assuming that you do have substantial income that does put you in the tax bracket.

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