Help--anxiety ridden about lay off with alot of debt still how 2 prepare?

[GCM]

Be careful about taking a part time job, I know that sounds crazy but with the jobs so hard to find you might find yourself unemployed longer than you think. If that happens, heavens forbid, you will have to reapply and your weekly amount will be lowered considerably. Here is a great site with lots of info & some great people.

http://unemployed-friends.forumotion.com/forum.htm

I strongly encourage you to take this advice. My husband got a part-time job after becoming unemployed and it has done nothing but cause problems. He was eligible to get training because he lost his job due to being shipped overseas. This program was for 2 years. Well, the second year of unemployment was based on his earnings during the previous year. Therefore, his second year of unemployment was less than 1/2 the first year. Whereas, all those who were laid off at the same time as him got to keep the full amount.

Not only that, he was offered another part-time job making more money than the first. He almost lost his unemployment because he "quit available work." He was never taken out of the first part-time job's computer system and was able to go back with them, keeping him on unemployment. Had his first part-time job taken him out of their system, he would have completely lost his unemployment. Mind you, he was working 10 hours a week, nothing major.

Just check into things and do not always believe what the unemployment office says--research on your own. The unemployment office told my husband that getting a PT job would help him--yeah, right.

I also agree do not buy things now that you do not need now.

It will take some time to adjust. There is a "mourning" period. Life as you know it is going to change, but you will be okay. Just know that you are not alone.

Prayers for your family.

 

[peggster]

OP, I have some sense of what you're going through. We've been dealing with ongoing layoffs at our company for over 2 years now, and I never know from month to month if I'll be in the next round. A couple of things to think about (and which have helped my anxiety) are...

1. Line up work references now, while you're still working. If you have a good relationship with your manager and/or other key employees at the company, consider asking for a written reference/letter of recommendation. That could come in handy while you're job searching later.

2. Do you (and/or your DH) want to stay in the same line of work? I've used this opportunity to think about that (a lot), and finally decided the answer was no. That means I'm going back to school so I can change careers, and I've started taking some classes now while I'm still employed. If I get laid off, I'll most likely go to school full-time. (Also, in some states, you can still collect unemployment while you're a student - don't know if that's true everywhere.) In a way I'm lucky, because knowing about the layoffs ahead of time has given me the opportunity to ask myself hard questions about my career path and realize I wanted to do something different. This isn't where I thought I would end up, but it's provided me with a kick in the pants to get me moving toward a better career goal.

I know it's tough. Good luck, and hang in there!

 

[bettymae1121]

Ditto, make the miniums on your CC's, cut back the rest of your budget to the bare bones, and save money like a mad woman!

Also, you and your husband both should go to your boss and see if there is anyway to extend your employment. Often when a company or just a division is shut down, they need a skelaton crew to stay on an extra few weeks to tie up loose ends. Also, check to see if perhaps you can transfer to another department, division, location, etc. If this is a layoff due to reorganization, they may need a few extra people in other areas to make up for the increased work load due to the layoffs. It's a long shot hail Mary pass, but if you don't ask you'll never know.

Be pro-active and start finding out now what your unemployment benifits will be so you can better plan your post-layoff budget. Also find out what paperwork and info you'll need to apply. That way you'll be ready to sign up ASAP once your employment ends.

Once unemployed, if you deplete your savings and find that you just don't have enough money to cover all your bills (after slashing to the bone, etc.), then the bills to stop paying first are your CC's. Keep paying the mortgage and the car payment(s) because you need a roof over your head and a car to get to any future employment, and food/utilities go without saying. After you miss one payment with the CC's, call up and ask for the hardship department, and tell them what's going on. They may do nothing, or they may cut your interest rate or be able to help in other ways. You can of course try calling before missing payments, but often they won't do anything until you start missing. If you can't work anything out with the CC companies, what will happen is that they will send your account to collections, and then the collection companies will hound you for payment. Not fun, but if the choice is between paying them and feeding the kids, then IMO the kids win.

Hopefully it won't come to that, you'll be able to find other jobs or be able to squeek by on unemployment. Keep posting here, there a lot of people on this board that can squeeze a penney until Ol' Abe screams for mercy. We're also good for a shoulder to cry on, and general encouragement!

Good luck!

 

[Free4Life11]

Part of the stimulus package, you can get a 65% subsidy toward your cobra payments. DH was laid off and instead of $1000 month, we pay 350 which is doable. Now DH is back to work contracting, but we can keep the cobra for 18 months, I think.

I believe you have to be unemployed before 2/28/2010 to be eligible, so I hope for the OP's sake they extend this subsidy!

 

[irisesareblue]

I suddenly was separated from my husband about 10 years ago and ended up with $1000.00 per month income and a $700.00 mortgage payment out of that. I cut back on everything - my phone "extras" like caller id and voice mail were gone - a friend gave me an answering machine. I also cut off my cable right away - videos from the public library were my saving grace.

Basically, I agree with the PP - cut everything unneccesary off and hoard the cash - pay the minimum payments and focus on survival right now. You'll get through it. Hugs to you!

 

[katlas&kids]

You say "no more health insurance"....COBRA should be available. Do NOT skip health insurance...do NOT allow yourself to be without this most important item, for two reasons:

1) Any illness can become financially catastrophic if you do not have coverage.
2) A break in insurance coverage can cause problems down the line when you finally ARE able to get new coverage.

AMEN on this! We had Cobra, or so they said, until we found out 3 months later that it wasn't there. this was Jan of 08 that we suppose to have had it, paid into it & then not there. We haven't been able to get insurance since, due to the lapse and the higher rates they charge due to being uninsured for over 3 months. And, yes, we have special conditions on half the family. Medication is horribly expensive. One thing to check for if you need a prescription is Costco. They have the best price, beating even Walmart, Walgreens & Target, generic & brand name. And you don't have to be a member to use their pharamcy.

 

[southcarolinagirl]

That is very true.

I believe you have to be unemployed before 2/28/2010 to be eligible, so I hope for the OP's sake they extend this subsidy!

That deadline is correct, but the House has already passed their "Jobs Bill" with an extension til the end of June, the Senate is supposed to introduce & vote on theirs this week (with an extension as well) so it is pretty much a sure thing that they will extend this deadline.

 

[goofyforlife]

OP look into Medicaid in your state -- income requirements, allowable assets, etc. Most states have a low cost/no cost plan that you will probably qualify for if you're both receiving unemployment compensation and have no other source of income.

That's a good one..... We didn't even qualify for my daughter to recieve the most expensive CHIP program here in MD when my DH and I were both unemployed....

Our cobra payment is more than four weeks of max allowable of unemployment too....

If you get unemployment your pretty much don't qualify for any aid....or heat assistance or anything.... (well unless you have like 50 kids.)

Gov agencies act like you're rich....

Luckily our church was able to help us out during the worst of it with a couple food gift cards....

When we get back on our feet...I don't have a problem contributing to the church needy fund because i know it has helped us...

OP...I wish you luck finding something else....

 

[MrsPete]

I'm going to disagree with some others here.

First look into what unemployment benefits / severence pay you have coming to you. Do not look for a part-time job until you've done this. What you don't want is to accept a part-time job that'll prevent you from collecting benefits that you have coming to you. After working 20 years, you've earned those benefits.

Next, look for ways you can SLASH your spending now. The kids can do without those clothes purchased on clearance. Look for ways to cut the grocery bill, look carefully at what else you might decrease.

Then start looking for full-time work. As someone else said, consider relocating among your other options.

 

[Gr8t Fan]

That's a good one..... We didn't even qualify for my daughter to recieve the most expensive CHIP program here in MD when my DH and I were both unemployed....

Our cobra payment is more than four weeks of max allowable of unemployment too....

If you get unemployment your pretty much don't qualify for any aid....or heat assistance or anything.... (well unless you have like 50 kids.)

Gov agencies act like you're rich....

Luckily our church was able to help us out during the worst of it with a couple food gift cards....

When we get back on our feet...I don't have a problem contributing to the church needy fund because i know it has helped us...

OP...I wish you luck finding something else....

Wow, I thought MD was such a progressive state. In Illinois a family of 4 can make up to $3,399 a month and still qualify for FamilyCare with a premium of $35/month.

I think Michigan has a similar program.

 

[nunzia]

You say "no more health insurance"....COBRA should be available. Do NOT skip health insurance...do NOT allow yourself to be without this most important item, for two reasons:

1) Any illness can become financially catastrophic if you do not have coverage.
2) A break in insurance coverage can cause problems down the line when you finally ARE able to get new coverage.

That is true..but COBRA is HORRIBLY expensive (at least when I looked into it). Maybe you can find a HSA health plan that would work for you. High deductibles, but at least you have coverage. Really...if you are losing most of your income l don't see how can you pay the 7 or 800 a month (minimum) for COBRA..

NM is such a poor state that it's easy to get kids covered by New MexiKids..sliding scale or free. My grandson's school is in a program where all school meals are free with no forms to fill out. Really, I would look into relocating if possible. And don't buy ANYTHING you don't have to have. If you do need clothes hit the clearance racks at thrift stores. We have learned over the years how to live really cheaply and it's become a habit. Also, I agree with starting to look for a job NOW..also don't get anything part time that could mess up any benefits. I'd also call the CC before you are delinquent. My son did this during a lay off period and they gave him a period of time where he didn't have to pay (of course the interest kept adding up, but still)
Good luck and I'm hopeful you'll find new and better things

 

[puffkin]

We just went through this last year...I am working in a temp position right now and hoping it goes perm, but we are still treating it like it won't so here are some of the things I suggest:

1. Figure out what your unemployment benefits will be and then get a part time job now. I qualified for full unemployment and could make about $250 additional per week on top of that before my benefits were reduced. So I got a part time job at Bed Bath and Beyond and just told them I could work 20-24 hours a week. That PT job really, really helped plus it got me out of the house and made me feel like I was contributing.

2. Schedule all the medical/dental/vision exams now. Get all the routine things out of the way now if you can while you still have good insurance. Even though we still had coverage, the copays were a big hit to our budget when I was laid off. Also don't forget the pets...try to get them in and up to date on their shots etc before the job loss.

3. CVS/Rite Aid. SO SO SO easy and you will save THOUSANDS of dollars. I get all my toiletries, Over the counter meds, cleaning products, paper products, some food, soda, etc there for PENNIES. The biggest key is to build your coupon stockpile NOW and to stockpile those items. It won't take a huge cash investment at all ($15-$20 to get started, literally pennies after that). You will be shocked at what you can get for free. CVSing changed my life!

4. Start learning the sales cycles at your grocery store. I only stockpile at the most a months worth of food. Usually everything cycles around every 4-6 weeks or so. No need to invest a lot of cash in a huge stockpile now. And again, start building your coupon stockpile now.

5. Consider dropping cable and just doing Netflix. Much cheaper than cable. Also consider investing in a device that you can stream Netflix to if you don't already have one. It is a small cash investment now (about the cost of one months cable if that) and you can instantly stream tons of stuff. LOVE that feature! We have it on the PS3 and the ability to stream to the Wii is coming this spring. They sell a Roku box ($79.99) or some blu rays can do it too (about $150 or so). Also if you are close to a major city you can probably pick up the Digital signals with an antenna now for the local stations. I think the new antennas run about $100...but for a one time investment you will have free tv going forward!

 

[Krischaser]

Thanks everyone---I have a six month old that I may not be able to get a pt job with and I don't want to screw up unemployment. How can I figure out how much we will receive and how much I could make to not reduce the benefit amount? I am from Michigan and I took my base wages from my highest quarter earnings and times that by the 4.1%....is this right? Thanks
How does CVSing work?

 

[descovy]

CVS-ing is basically buying something now to get extra-reward dollars later. In the end you are getting toiletries and such for free or nearly free (stocking up) certain shampoo brand, a toothbrush, snacks, etc...

I am of the opinion (as one who has been there twice) that you don't need to be buying anything now that you don't actually need now. You need the cash more than a stockpile of toothpastes and potato chips. Shoot, if you have anything you can still return to the store, all the better!

Again, this is different than just everyday frugality... CVS-ers & coupon queens love to stock up... You need to keep afloat!

You need cash, not things. What if the car battery dies? Are you going to buy it with your stockpile of soap?

When you use up your last bottle of shampoo go out and spend $1 on Suave. But don't go out now and buy $10 of stuff just because it was a "really good deal"

Since you have a baby at home, can you babysit? Something like that would be under the table, but bring in a little cash. And you are already equipped!

When unemployment runs out, maybe consider working at a daycare. I did, for a year when DH was out of work. I had 3 kids under the age of 5 (my youngest was 4mos old when I got hired) No other experience than being a "mom" Pay was "mild" but I figured when you counted the savings I got to have 3 kids in daycare for nearly free, it was like making $30,000 a year... more than it " seems" on paper...

 

[puffkin]

CVS-ing is basically buying something now to get extra-reward dollars later. In the end you are getting toiletries and such for free or nearly free (stocking up) certain shampoo brand, a toothbrush, snacks, etc...

I am of the opinion (as one who has been there twice) that you don't need to be buying anything now that you don't actually need now. You need the cash more than a stockpile of toothpastes and potato chips. Shoot, if you have anything you can still return to the store, all the better!

Again, this is different than just everyday frugality... CVS-ers & coupon queens love to stock up... You need to keep afloat!

You need cash, not things. What if the car battery dies? Are you going to buy it with your stockpile of soap?

When you use up your last bottle of shampoo go out and spend $1 on Suave. But don't go out now and buy $10 of stuff just because it was a "really good deal"

I 100% disagree with this. I understand what you are trying to say, but CVSing is minimal cash outlay. The people who are spending a lot of cash to CVS don't know what they are doing or aren't disciplined at it. Trust me, I have been doing it for a long time. You need $15-$20 to get started but after that you are spending your Extra Bucks and NO CASH. I spend about $5-$10 a month on CVS/Rite Aid out of pocket (that is mainly for sales tax) for literally hundreds to thousands of dollars worth of merchandise.

Yes you are buidling a stockpile, but why not if it isn't costing you anything? I myself was so thankful to have my FREE stockpile when I was unemployed not to mention all the others I helped out as well.

Also, as a veteran CVSer, some things go on sale frequently (ie Toothpaste). But great deals on something like Toilet Paper is hard to find. I found one last summer and stocked up then....I got over a years worth of TP (Cottonelle) for about $5. Hopefully another TP deal will come along before that runs out.

To the OP, find our weekly CVS thread and jump in. We will be glad to help you get started. Next week is a good week to start so pop in and we can give you some scenarios!

 

[Evi]

I'd put together a few lists:

Bills what must be payed rent/mortage, utilities etc.

Bills what can be cut things you can live without for awhile cable, netflix, magazine subscriptions, online subscriptions etc.

Put together a bunch of stuff you dont need anymore things you can sell say ebay or garage sale.

Contact dept of employment and training, apply for unemployment ? what medical benefits you qualify for. Is there a local free clinic you can count on for emergencies etc.

Find our if you qualified for a severance of some kind.

As for cvsing if its not taking you much to add to your inventory then thats cool but remember things do expire and you dont want to over stockpile.

Request letters of recommendation from supervisors and coworkers.

Start networking asap keep intouch with coworkers who were doing what you were doing or friends who are in similar industry put the word out that your looking for full time work.

As someone else said don't jump on an underpaying part time job because it may work out to be less then you'd be getting from your unemployment and its more important for you to be able to pay your bills and search for full time work.

I'd see if you qualify for a loan to consolidate any debt and then you'll pay a lower intrest rate on loan so you owe less in long run.

Know that your not alone and there are alot of resources out there. I'd ask around and find out whats available in your area.

 

[smidgy]

5. Consider dropping cable and just doing Netflix. Much cheaper than cable. Also consider investing in a device that you can stream Netflix to if you don't already have one. It is a small cash investment now (about the cost of one months cable if that) and you can instantly stream tons of stuff. LOVE that feature! We have it on the PS3 and the ability to stream to the Wii is coming this spring. They sell a Roku box ($79.99) or some blu rays can do it too (about $150 or so). Also if you are close to a major city you can probably pick up the Digital signals with an antenna now for the local stations. I think the new antennas run about $100...but for a one time investment you will have free tv going forward!

$79.99. $159, $100 are you serious? netflix, Wii, Blurays, are the last of the OPs concerns right now.

 

[srferson]

Be careful about taking a part time job, I know that sounds crazy but with the jobs so hard to find you might find yourself unemployed longer than you think. If that happens, heavens forbid, you will have to reapply and your weekly amount will be lowered considerably. Here is a great site with lots of info & some great people.

http://unemployed-friends.forumotion.com/forum.htm

Seriously? The unemployment amount will be reduced to a point where having just unemployment payments would bring in more money than unemployment and a part time job would?

 

[bumbershoot]

$79.99. $159, $100 are you serious? netflix, Wii, Blurays, are the last of the OPs concerns right now.

FWIW, I can see where the poster is coming from. And you wouldn't need ALL of those things. Just one, from what I understand. So for the cost of one or two months of cable, they get something from what the poster mentioned, and then their entertainment needs are set without having to pay for cable. With a family, it's not always that *easy* to deal when you don't have the ability to watch *anything*.

The OP can hear the thoughts and decide if she feels that it's important to have entertainment through the TV or not.



OP, if the COBRA subsidy is extended, if it applies to your company, it lets you pay a percentage of what your insurance actually costs. When we were looking at a layoff and contract work with no insurance, the subsidy was just about 6 months old...the way the percentage worked out (I think you pay a third with the subsidy), the one month we had COBRA we paid almost what we were paying DH's company. Which meant that our insurance truly cost about 1K, while we just paid around 300 of that (and now I don't complain about the insurance costs anymore).

So if the subsidy is extended for those laid off during this period of time, depending on the true cost of your insurance, you *might* not be paying a horrendously high amount. For now.


I wish you and your husband so so so much luck!

 

[momofsamandeden]

my dh was laid off in May. I was 8 months pregnant with our third, we had just signed a lease on a new house rental that was 150 more than what we were paying before. The former company had relocated us so we were no where near family. I swear it is what caused me to have a preemie. We had a PS3 so we did cancel cable and did the 2 rental package. Surprisingly with HD antenna we got all the shows we normally watched any way. The instant movie queue disk kept my family happy.
Two weeks after the lay off my dh took a temporary job on a Walmart remodel in the town we were living in. I have to hand it to him, it was tough to swallow however less than a year later he is in management at that store in a job that was only supposed to last three months. You never know...
The best thing we did is NOT live on credit. Even with two weeks unemployed it took us at least two months to bounce back financially.
Start really taking inventory of how you grocery shop. I started doing this by noting waste that I would throw out or how long something sat on the shelf. I now shop twice a week for those exact days and I have noted so far a savings of 175 on average a month by doing this.