Kalvin Holliman has a problem that more Americans are facing each day. He was laid off three weeks ago and has to make ends meets with an unemployment check instead of a paycheck.

The 47-year-old worked as a machine operator at Kennametal Inc. in Evans for 16 years. Times are tough for Mr. Holliman, but not dire. He still has his wife's salary to go along with the unemployment and his vacation pay.

"I'm not feeling grieved about being laid off. I'm trusting in God. People have to believe in God and know that he will provide for them," Mr. Holliman said while filling out a job application at Peak Employment Solutions.

Nationwide, job losses have reached staggering numbers and layoffs have plagued all industries. In the Augusta-Aiken area, 3,269 unemployment insurance claims were filed in January. The area's unemployment rate climbed to 8.7 percent in December, surpassing the state's rate of 8.1 percent, according to the Georgia Department of Labor.

"The majority of the public does not have a sufficient emergency fund, which is three to six months of income saved," said Gail Cunningham, a spokeswoman for the National Foundation for Credit Counseling.

That lack of a financial cushion creates some day-to-day living concerns on how to stretch lower income.

IN A JOB LOSS, IT'S crucial to review income and debt obligations to determine how much is needed for basic household living expenses, said Cindy Tesch, the community outreach director for the Consumer Credit Counseling Service of the CSRA.

"If you must make a choice, keep your home life stable by paying your rent or mortgage, utilities, child care, insurance premiums, health care, food and keeping gas in the car," Ms. Cunningham said.

She said that she advises people who have lost their jobs to not live off credit cards.

Though they have a good line of credit and might be able to support their family at their current standard of living for a while, there's no guarantee they will find a new job quickly.

She recommends allowing one month of job searching for each $10,000 of annual income the person is trying to replace. In other words, expect to spend six months of searching to find a $60,000-a-year job.

If consumers are paying more than the required payment on their mortgage, auto or student loans, they should start to pay only he required amount and save the remainder for living expenses, according to Beth Gamel, a CPA who is member of the American Institute of Certified Public Accountants.

Also, establish a budget and write down your goals, including financial and career, for six months to one year. It's hard to focus if people don't know their plans. For example, people might want to keep the house and car, Ms. Tesch explained.

"The difference between needs versus wants is huge when you're getting an unemployment check," she said.

For instance, people might have to cut back on their trips to the hair or nail salon. Expenses such as groceries and fuel are variable expenses, which are the easiest to control. It's also possible to control utilities by making repairs or reducing energy use, Ms. Tesch said.

Parents should have a family meeting with their children so that everyone can work together.

"You'll be amazed at how much it helps. Some families are going to have to move in together like they did years ago. These are options that consumers don't realize because they're so stressed," she said.

A tax refund could also provide a source of emergency funds, Ms. Tesch said.

THOSE WHO CAN'T meet all their obligations should contact creditors to arrange for lower payments, Ms. Cunningham recommends. She said that if people explain their situation and their plan for action, the creditor might be able to lower the payments temporarily or reduce the interest rate.

She also suggests people do the same with mortgage companies, though it's best to meet first with a certified housing counselor to form a plan.

Ms. Tesch has found, however, that many credit card companies are unresponsive to customers' requests. In many cases, customers might have better luck if they have an organization such as Consumer Credit Counseling to call on their behalf. Her office helps people to resolve their financial issues daily.

If consumers miss payments, credit card companies often increase their interest rate. Through the universal default clause on the back of a person's credit card statement, other creditors can also increase their interest rates, which makes a person's debts spiral out of control, she said.

Ms. Tesch suggests for people to seek legal services if they can't pay their bills, but she wouldn't consider filing for bankruptcy unless it's the final option. Bankruptcy stays on an individual's record for 10 years. In three months, they might be employed again, she said.

Filing for bankruptcy costs money, but some people might qualify for a pro bono attorney through the Georgia Legal Services Program.

TO FIND MONEY TO live on, people might have to liquidate their assets, such as a second car, recreational vehicles, rental properties and jewelry. It's important to take inventory of assets, income and expenses ahead of time to know your options, Ms. Cunningham said.

People shouldn't sit back and relax while receiving their unemployment check. They should make searching for a job their full-time job, she said.

"A lot of people go into denial. You want to be first in line and not last in line. They're really compromising their hope of landing a new job," Ms. Cunningham said.

Until the dream job comes along, people shouldn't be ashamed to take a lower-paying job to make ends meet, Ms. Tesch said.

"The biggest issue with consumers is pride. You have to swallow your pride to feed your children," she said.

Reach LaTina Emerson at (706) 823-3227 or latina.emerson@augustachronicle.com.