Fairfax, VA - January 28, 2009 — The Bureau of Labor Statistics released the December layoff numbers today and reported 226,117 people were laid off from their jobs in December 2008 bringing the total unemployment figure for 2008 to 2,130,220. So far this year layoffs reported by companies are keeping pace with December figures and the news is not expected to get better any time soon. The Association of Independent Consumer Credit Counseling Agencies recommends consumers prepare their finances for the possibility of a layoff.

"Some advance planning will help ease the financial strain for families who believe a layoff is in their futures," said Dave Jones, president, AICCCA. "In addition, for families who have experienced a layoff it's not too late to take action to improve your finances."

To help, AICCCA offers five steps to minimize financial damage from a layoff:

Create and utilize a bare bones budget. Spending habits will have to change while you are unemployed because it may take you months to find another position. The two areas of your budget where you can cut to save the most are food and entertainment. Shop smart, eat at home and get creative with your entertainment choices to include free activities.

Save as much as possible while you still have an income. Don't wait until after your severance package is gone to begin preparing for a reduced income. Put your bare bones budget into place as soon as you know you have lost your job. Place all savings from reducing your expenses into a savings account.

Protect your credit. For as long as possible pay all your bills on time to ensure your credit stays in good standing. Many employers request that you allow them to view a credit history as part of the application process.

Prioritize bill paying. If your unemployment benefits are not enough to cover all your expenses, you will need to prioritize your payments. Your mortgage and car loans should be paid first, then utilities and lastly unsecured credit card accounts. Continue to make minimum payments on your credit cards as long as you are able.

Get help early if you are feeling overwhelmed. A qualified AICCCA member office can help you prepare a plan to weather this gap in employment and help you get your financial life back on track. Call 866-703-8787 or visit www.aiccca.org to find an office that can serve you.


Founded in 1993, Association of Independent Consumer Credit Counseling Agencies (AICCCA) is a national membership organization, established to promote quality and consistent delivery of credit counseling services. AICCCA and its members are focused on improved creditor relations, efficient processes and advanced technology to best serve clients and creditors. AICCCA members are independent nonprofit agencies that advocate for debtors, counsel millions of consumers annually nationwide and provide debt management services to consumers with excessive unsecured debt. For more information or to contact an AICCCA member office call 866-703-TRUSTAICCCA (866-703-8787) or visit www.aiccca.org.