Got laid off today is the best thing to do with my severance?
I got laid off today. I am not prepared as I have no savings. Mostly because when they started laying off people first round last year I spent past 6 months paying down as much as possible.
At the time when coworkers were laid off last year I was drowning in debt (long story - not my fault)
At the layoffs last year we also went remote i decided to sell my car that and a couple of changes I was able to get out of the red and get debt under control. I was still living paycheck to paycheck but it was under control.
When they laid off people last fall i decided to take what little savings plus any money left over since then and paid down my debts.
Nothing has been paid off so far but i made a little headway.
The comoany recently laid off alot of people and im promised a good severance (4-5 months of pay) plus my final check. Add in $1800 per month ill probably get from unemployment for max 6 months.
This is where I need your advice. I want this money to last as long as possible as I dont know when I will get another job but if i so get one quickly more than likely it'll be a job that pays way less than what I make now and won't be enough for all of my bills per month but definitely more than unemployment.
Should I just not pay off anything and just the minumum. The money plus unemployment will probably last around 7 months. But downside is ill still owe what I owe.
Or
Save enough for basic necessities (rent, car, phone, groceries, utilities) and anything remaining and pay it off. Downside is ill have to tap into anything i did save to pay the minimums on any remaining debts.
Posted Jun 17, 2025, 2:51 AM UTC