While many people assume they will never face the challenges of unemployment or a disability, the chances are you will face one of these two obstacles at some point in your life. Here are some suggestions for protecting your credit if one of these two challenges have taken you unawares.

1. Be prepared. It’s recommended you always have at least half a year’s worth of income in cash reserves where you can easily access it. Long-term investments often carry high penalties for early withdrawals, so it’s best to have a simple savings account ready for an emergency.
2. Spend your cash reserves first, then use your credit. You will have a harder time getting credit the longer you are unemployed or disabled, so put off using your credit options until you have to. Instead use cash and find ways to liquidate assets before you tap into credit sources.
3. Change your mindset about expenses. You need to focus your expenditures on two things: essential living expenses and money spent to either get better (physical therapy, medical costs) or to get a job. Be careful not to cheat yourself of important things such as a good new suit for interviewing or the proper medication, but remind yourself that any other extras are simply not in the plan until your financial situation changes.
4. Make a budget and stick to it. Use the extra time you have to evaluate your finances and find all the places you can reduce spending. That means no more cable, no extra cell phone, cancel subscriptions to online games and services, and reducing entertainment costs.
5. Pay all your debts on time, every month. This is incredibly important. Thirty five percent of your credit score is based on if you make your payments on time, so do whatever it takes to make your payments.
6. When choosing forms of credit, use home equity before credit cards. The interest you pay on your home equity loan is tax deductible.
7. Make your mortgage payment your top priority. Mortgage companies will not accept partial payments, and it’s a slippery slope to foreclosure. You don’t know how long your stint of unemployment or time with a disability will last, so keeping a roof over your head is absolutely essential.
8. File the correct papers, and update them as necessary. There’s a lot of paperwork involved in filing for either disability or unemployment benefits, but you need to do it to keep your finances in order. Get rides if needed, ask for help from friends to get into the right offices, but make sure you get your paperwork filed, correctly and on time.
9. Initiate contact with your lenders if you can’t make even one payment. Request a hardship deferral of payments or a smaller minimum payment. By taking the initiative, you show you want to pay your bills and are willing to negotiate. Contact the creditor by phone, but follow up with a paper trail of either emails or snail mail letters.
10. Try not to max out any of your credit cards. It’s best to charge a little on several accounts than all your debt on one. Creditors are wary of maxed out credit cards.

Keep in mind that your situation is temporary, and focus your efforts on getting better or finding the right job. Many people have endured this situation before you. If you need support, look for a consumer credit support discussion forum online.