As unemployment reaches its highest level in decades, more and more families are facing reduced incomes and the financial challenges that come with job loss. At Consumer Credit Counseling Service (CCCS) of Central Florida and the Florida Gulf Coast, counselors working with consumers who have lost a job find that taking quick action can mean the difference between a temporary setback and a financial disaster.

“While you might not be able to anticipate being unemployed, you can minimize the financial impact that comes with the loss of a job,” said Rick Skaggs, president of CCCS. If you find yourself suddenly unemployed, CCCS recommends taking these first steps:

Look into unemployment benefits right away. If you are unemployed through no fault of your own, you may qualify for unemployment benefits. In Florida, you are eligible for benefits for a maximum of 26 weeks. The Florida Agency for Workforce Innovation website (http://www.floridajobs.org/unemployment/) has helpful information about qualifying and requesting unemployment benefits.

Look for potential sources of additional income. If you have more than one wage earner in your household, explore opportunities to earn additional money through overtime.

To help sustain your finances while you look for your next job, consider taking on part time or seasonal employment – it can provide both extra money and flexibility to go on job interviews. Contact local temporary agencies or your local workforce development agency to explore opportunities for employment as well as training opportunities that might help qualify you for a position in another industry.

Prioritize your expenses – starting with your mortgage. Many people are juggling a variety of debt, but it’s a priority to make your mortgage payment before paying other bills. Falling behind on your mortgage payment will put your house at risk, especially in states where lenders don’t need to utilize the court system to foreclose on a home. After your mortgage, car payments, insurance premiums and food should follow on your priority list.

Notify your creditors right away if you are unable to make the minimum payments due on credit cards or other revolving credit. You may be able to get your interest rate reduced or your payment plan modified. Even if you can’t make a full payment, Skaggs suggests paying something toward the debt. “Deferring or skipping payments increases the debt, extends the life of the debt, and will likely result in quickly mounting fees.”

Reduce spending – wherever you can. Take a realistic look at your monthly expenses and identify areas that can be reduced or eliminated. Entertainment costs are easiest to eliminate – skip lunches and dinners out and rent movies instead of going to the theater.

Review your cable and cell phone plans to see if the cost can be reduced. Consider foregoing them altogether – there may be a fee to cancel a contract, but it will likely be much less expensive than having monthly fees, late fees, and interest building up over time.

Things to Avoid. Try and avoid incurring any new debt. Resist the temptation to take cash advances on credit cards or to do business with small loan retailers, many who charge astronomical interest rates on the money they lend. While a home equity loan may help create a temporary cash flow, it has long term implications and is not recommended.

If possible, avoid tapping into retirement accounts or your 401K, as the significant penalties and tax implications may far outweigh the temporary financial benefit.

Seek help. Utilize community resources to help bridge the gap. Emergency assistance for your utility bill may be available, and local food banks can help provide basic necessities. Contact your local United Way (www.unitedway.org) or your local 211 Information and Referral Service (dial 211 or visit www.211.org) for information on emergency services available in your community.

For help getting your finances in order, CCCS offers free, confidential counseling via telephone at 800-251-CCCS and online at www.cccsinc.org and www.cccsenespanol.org.

Plan for the unexpected. Even if you haven’t lost a job, it is a good idea to create a savings plan now that will help financially prepare you for any potential life-altering event. Make saving part of your budget, and set aside a portion of your income in a savings account until you have at least 3-6 months living expenses.

Work now to reduce and eliminate your debt and strive to maintain a budget that doesn’t involve spending more than you make. While it may not take away the pain that comes from losing a job, it can certainly provide peace of mind during a very stressful time.

Consumers can speak to counselors in English and Spanish 24 hours a day, 365 days a year, by phone at 1-800-251-CCCS, and also access the agency’s web sites, www.cccsinc.org and www.cccsenespanol.org where live-chat counselors are available around the clock.