At the time when people need credit most badly, there is none available to them, be it long term or short term loans. In January this year, American firms shed about 598,000 jobs. The unemployment rate in US touched an all time high of 7.6% in the last 16 years. The government may say the situation is not as bad as the economic crisis of the 1970s but the statistics beg to differ.The number of jobs added by the government is too less to compensate for the widespread unemployment across different industrial sectors.

No industry in United States is immune to the impact of recession. This year saw factories slashing 207,000 jobs in January, the biggest one-month drop since October 1982. Other sectors to axe positions include construction companies, professional and business services, retailers and leisure and hospitality businesses. Layoffs and salary cuts have become standard practice in most enterprises, with every employee fearing the pink slip.

As people of the country suffering an unemployment rate of 8.10% come to terms with their unemployment, you should feel lucky to be holding on to a job. Getting a loan will not be a difficult task for you. If you're in the ranks of the less fortunate, jobless people, getting a loan may be tricky business.

You might have lost your job due to any of a million reasons, many of which are not your fault. Still, the bills have to paid, car payments are due and the home loan installment is pending. If you don't find an effective source of funds, things can get out of hand.

The surest way to get out of this situation is to take any new job you're getting. If that doesn't sound like a good idea, make an estimate of the amount of time you can stay afloat with the money you have. Presently, the economic conditions are not favorable for being too selective.

Before you face the axe of losing your job, be prepared for the worst. Apart from applying for a short term loan, you can consider credit protection insurance. This insurance policy must be taken out before an individual becomes unemployed. If such a situation arises, you will be covered by the credit protection plans to meet your repayments for you, until you find another job. However, you will have to adhere to strict conditions like accepting the first job offer you get, even if it does not meet your aspirations.

As the unemployment rate surges ahead of the job gains in certain industries, the crime rate has also picked up. It may seem that all is lost when you get fired from work but that is not true. If you can show a good previous repayment record, and have potential for getting a new job in the near future, lending institutions may be willing to back you with a short term loan.