DH layed off...now what?

[busy mom]

Due to the NYState budget mess, my husband will lose his job at the end of the year. I'm trying not to panic here, and deal with this carefully. What can we do to get us in a better position to deal with this loss of income? Should I open a new credit card up now to use as an emergency backup? Our credit is stellar, but may not be for long. Should I use his last month of paychecks to pay off debt, or save every possible penny?

We have some savings, but not as much as I would like. I could kick myself for not putting more aside, but at this point I can only deal with what is in front of us.

Any suggestions from anyone that has been through this, or is going through this now, would be appreciated.

No Mickey for us in the near future...

 

[mhsjax]

Due to the NYState budget mess, my husband will lose his job at the end of the year. I'm trying not to panic here, and deal with this carefully. What can we do to get us in a better position to deal with this loss of income? Should I open a new credit card up now to use as an emergency backup? Our credit is stellar, but may not be for long. Should I use his last month of paychecks to pay off debt, or save every possible penny?

We have some savings, but not as much as I would like. I could kick myself for not putting more aside, but at this point I can only deal with what is in front of us.

Any suggestions from anyone that has been through this, or is going through this now, would be appreciated.

No Mickey for us in the near future...

I am so sorry It is never a good time for this, but this time of year is a real kick in the tush. I personally wouldn't open a new acct, I also would not pay off any debt with your last paychecks. You and your family need to eat, have shelter and in NY, you will need heat. I would save for these things. This is just my personal opinion, I am no expert.

 

[Tink-n-MrIncredible]

I'm sorry to hear this, I wish you all the best. My .02 is for you NOT to get any new credit cards. If you rack up extra bills to pay you will only give yourself something else to worry about. No flames as this just MY .02.

 

[mum4jenn]

Hugs to you. I wish you better luch than we have had.
The economy is still really bad no matter what those still employed say about it.

I am thankful we both have jobs but when your income makes a drastic change it is very tough.

DH lost his job due to the plant closing and he is working now but he is only bringing in about 1/5 of what he was making. No Christmas presents for Dh or myself this year and DD will only get 3 things.

 

[Virgderon]

I have been through this. I'm sorry this happened to you.

If you are not already carrying credit card debt, I think it would be okay to open a new card to have an emergency line of credit. You don't know how long it will be for DH to find a new job.

Do the same thing if you have student loans. Call them and work out terms.

Call any existing credit cards if you do have them and work out payment terms now. Tell them your income will be cut dramatically and see if they will put you on a hardship plan.

Make the cuts you can now. Cut back to basic cable, start couponing and really paying attention to food sales. Avoid eating out, and have DH brown bag it for these last few weeks that he is working. If you have a cell phone, get rid of the home phone.

Check the house and caulk around the windows. If you have any gaps between the floor and the door, put a towel there or one of those door sealer things. Turn down the heat and wear a sweater.

Since Christmas is coming, ask family for gift certificates to grocery stores or gas cards instead of gifts.

Raise the deductibles on your car insurance and see if that lowers your monthly car insurance payment.

Review all your bills and see if there are other negotiations that you can do.

Good luck. It will be okay.

 

[NHWX]

We've just come out the other side of a layoff so I hope I can help.

If you think you can get any changes through HR at this point in time, it's probably useful to set any retirement savings that's deducted from his paycheck to zero.

If you have any health care reimbursement money not spent, call doctors and/or dentists, make appointments and get bills ASAP. Ditto for any medical needs that'll be paid for by insurance - refill prescriptions, have your annual exam/mammogram, etc.

Have him print out any severance packages, employee savings plans balances, etc.

Get coworkers home email addresses, phone numbers, etc. especially those that will be willing to give recommendations for another job.

Start investigating health insurance. Find out how much your COBRA payments will be. I was able to get temporary insurance for my children through our state which proved to be both inexpensive and a real comfort.

Start (as much as he probably won't want to do it) writing a resume now and get it out to relevant people - former employers, job boards, recruiters, etc. My husband didn't want to start letting people know he'd been laid off but it's important. He ended up getting a job not by doing any of the above but by attending a local conference and talking with a local employer.

Consider starting a small business also. It might take a while to get going but there's no guarantee that he'll be able to find a job like his old one.

Start cutting costs now. There was another thread on this board about rising food costs. If you like to cook, consider stocking up on things that you will need over the winter. If you don't, then plan on how you will reduce your grocery/dining budget. Oh, and as difficult as it is, consider making and trying to stick to a budget.

Look at your bank accounts and big bills. Does your checking account require that you have an automatic deposit/withdrawal to avoid fees? Can you switch to a savings account that has a better interest rate? Will your insurance let you pay the fees over 10 or 12 months? Can you talk now with your town about property taxes that will be due at either the end of this year or the beginning of the year?

NHWX

 

[verygfy]

We follow Dave Ramsey and his advice, when DH was laid off in April of 2009 I freaked and then realized we would be ok. I did just what he said and it worked out:

Stockpile cash, cut everything back (cable, dining out, everything), start living as inexpensive as possible.

Then write a list in this order, food, utilities, transportation, and shelter. Pay all of these first after that put things in your priority.

I am so sorry for your situation, I was there also and we came out the other end ok. I agree with OP get those resumes out there next week, get them in people's hands. You would be surprised where he may find a job and just how fast it could happen.

In regards to the credit cards I have a friend who had the insurance on her credit cards for when you are out of work (you pay like .10 per $100) so her credit cards went on deferment until she got back on her feet. It took about 12 months and I think 2 of her cards just payed off her balance.

 

[Aliceacc]

Are you working? Do you have health care benefits?

 

[aprilgail2]

I would not use the last paychecks to pay off debt- I would save as much of them as possible. Hopefully you can make it by on just your salary/benefits for awhile! Good luck- hope he gets a new job soon!

 

[jacksmomma]

I just want to send some hugs and pixie dust to you. In both '08 and '09 my husband lost his job the first week of December. It was rough, at the time I was working at home and we had no insurance. Thankfully we worked though it and we are both working outside the home now. Stay strong and look for the postivie side of things. Instead of thinking of what you don't have, think of what you do have.

 

[StitchBuddy]

I am so sorry! We have had this happen a couple of times due to the nature of my hisband's type of work and are currently waiting to hear about a lay-off and if it will effect us. I know it is scary, but everything will work out. The previous posters have given you good advice. Hopefully he will get some type of severance and then he will be able to get workers compensation. Here is a hug for you! Keep your chin up everything will work out okay.
One more thing we did that I haven't seen listed yet is to lower our heat to 55 at night and then raised it to 65 during the day. I also opened all the blinds to warm up the house as much as possible (lived in Colorado at the time).

 

[A Mickeyfan]

I would not use the last paychecks to pay off debt- I would save as much of them as possible. Hopefully you can make it by on just your salary/benefits for awhile! Good luck- hope he gets a new job soon!

I agree here.. I also would not open a new credit card either.

 

[snowy76]

A small suggestion, but with it being the holidays, see if you and/or DH can find some part-time work at the mall. It won't be much, but it's a chance for extra income that won't be around by January.

 

[sydneysmom]

I'm sorry to hear this, I wish you all the best. My .02 is for you NOT to get any new credit cards. If you rack up extra bills to pay you will only give yourself something else to worry about. No flames as this just MY .02.

I totally second this...the last thing you want to do is open new credit cards. At the very worst, perhaps he can get part time work at someplace like Home Depot or Lowe's, while looking for another job. Thoughts and prayers are with you !!

 

[crisi]

Cash is king in this situation - horde it. That means don't pay off bills.

Cut what you can NOW and look to increase income where you can NOW. The advice to take care of any outstanding medical/dental issues while you still have good insurance is very good.

Do you work outside the home? If you don't, this might be a good time to look for something. And if you take a mall job for the holidays, its possible your hours will get cut way back in January, but its possible you'll still be able to do pick up hours.

Good luck, take a deep breath, and be thankful for what you do have.

 

[PatMcDuck]

Depending on how much CC debt you have, and how much available credit you have, I would consider opening a new CC. My husband is in construction, we have used credit at times to survive. That said, we have also had trouble paying it off later, but we managed. So proceed with caution.

CC can be used for emergencies. If you have some credit, you are ok, but it can save your life for things like car repairs (can't get a job without transportation). I have used it to pay life insurance premiums too, THAT to me is a high priority, along with car insurance. Your furnace could blow in the winter..... eyeglasses could break, just so many things......

Good luck to you!