impending job loss - budget decisions - Mothering Forums

Forum Jump: 
 
Thread Tools
#1 of 15 Old 02-26-2012, 12:55 PM - Thread Starter
 
Katrinaquerida's Avatar
 
Join Date: Mar 2008
Location: Western New York
Posts: 131
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)

I recently got word that I will be laid off in June. I currently earn 2/3 of our family's income and we are just making enough to cover bills and needs right now. We have significant cc debt that I have been working to pay down, but I am afraid I wont be able to make payments  at all when I am out of work. So, my big question is, do I keep trying to pay these down as usual, or do I do something different, with the intention of building a bigger emergency fund? I would appreciate any advice/insight!

 


Check out my new blog naturalfamilysteading.blogspot.com!
Katrinaquerida is offline  
#2 of 15 Old 02-26-2012, 01:34 PM
 
laohaire's Avatar
 
Join Date: Nov 2005
Posts: 7,314
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)

I'm going to throw my idea out there and see if anyone can poke holes in it or suggest something better.

 

My thought was this:

 

- Start paying only the minimum on your cc debt, but still keep it all current.

- Generally cut ALL costs NOW down to the bone. Cancel cable, eating out, all the usual suspects.

- SAVE SAVE SAVE as much as you can in the meantime.

- Obviously, start looking for other work right away.

 

So, in the ideal scenario, you find a new job soon, and after you feel reasonably comfortable you take your savings (minus a basic emergency fund) and throw it at the debt. You're a little worse off since you've been paying on the interest in the meantime, but you've hedged your bets.

 

In the worst scenario, you don't find a new job soon, and maybe eventually you even have to stop paying the debt altogether. But instead of paying off creditors like crazy in the meantime, you have the money so you can keep putting food on the table and have options (such as money to move, for example).


Homeschooling mama to 6 year old DD.

laohaire is offline  
#3 of 15 Old 02-26-2012, 04:24 PM
 
crunchy_mommy's Avatar
 
Join Date: Mar 2009
Posts: 6,501
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Hopefully you'll be able to find another job within the next few months and won't have to be unemployed for any length of time...

We just got through a 13-month unemployment & we survived it quite well, I think. We didn't have cc debt but yes, I'd suggest backing down to the minimum payment and putting any extra money into a savings fund. I probably wouldn't go back to tackling that debt until you've secured a new job. I would say all your money should go into savings to get you through potential unemployment. But I guess it depends how much is on the cc and what your credit limit is. Theoretically, you could pay off the cc but keep it open, and then live off the cc if you truly had to, but I don't think that's ideal. What is your interest rate?

And I will echo what the pp said, cut all extra costs now, cable, internet, memberships, etc. and get down to the bare minimum. Good luck. redface.gif

Co-sleeping is really wonderful when your child actually SLEEPS!! familybed1.gif
crunchy_mommy is offline  
#4 of 15 Old 02-26-2012, 04:54 PM - Thread Starter
 
Katrinaquerida's Avatar
 
Join Date: Mar 2008
Location: Western New York
Posts: 131
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)

Thanks for your support! I am a teacher, so I will be on a call back list, but I will be looking elsewhere as well. The job market is not so hot in my area, but we don't really want to move. We already have a pretty pared down budget, no cable, no eating out, no memberships. I am thinking about ditching our cell phones, maybe trying trac phones. I also might cut back our daycare and see if my mom and mother in law could watch the kiddos once or twice a week. That only helps if someone is willing to share our daycare spot though. I am barely making above minimum payments on the cc debt, but I think youre right that building up the ef is the way to go. Keep sending me good vibes!

 


Check out my new blog naturalfamilysteading.blogspot.com!
Katrinaquerida is offline  
#5 of 15 Old 02-27-2012, 04:19 PM
 
taubel's Avatar
 
Join Date: Jun 2007
Posts: 328
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)

FWIW, we really like our Trac phones. DH and I are not big cell phone users, but we do use them sometimes. I budget $12.20/month for them, and that includes BOTH phones. Best of luck paring down!

taubel is offline  
#6 of 15 Old 02-27-2012, 06:00 PM - Thread Starter
 
Katrinaquerida's Avatar
 
Join Date: Mar 2008
Location: Western New York
Posts: 131
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)

Thanks for the encouragement! 


Check out my new blog naturalfamilysteading.blogspot.com!
Katrinaquerida is offline  
#7 of 15 Old 02-29-2012, 05:20 AM
 
rebirth's Avatar
 
Join Date: Oct 2008
Location: Florida
Posts: 1,009
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Interested, because we're in this boat too... My hubby has an impending layoff. He is already putting his resume out there and has a meeting scheduled for Friday, so our best case sanario is him finding new employment before the layoff, but if it happens i've been collecting resources and ideas. My dh makes 90% or so of our income and we've a baby otw in June, so I am trying to relax and think positive but am quite stressed over it.

Best of luck that you'll quickly find work! Can your partner attempt to find a higher paying job as well?


Doula mama to my nursing toddler Noah and a June baby otw

Mama to bftoddler.gifand belly.gif

rebirth is offline  
#8 of 15 Old 03-02-2012, 06:38 PM - Thread Starter
 
Katrinaquerida's Avatar
 
Join Date: Mar 2008
Location: Western New York
Posts: 131
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)

Congratulations on the little one! I know how stressed you must feel and I am hoping you will hear good news! My DH can and has been looking as well, but his job, although not high paying, is pretty secure so we aren't willing to let it go at the moment! I have been looking, but the local school budgets havent been finalized yet, so no one knows who will be hiring at this point. I am just trying to tighten up our finances and see what comes...

 


Check out my new blog naturalfamilysteading.blogspot.com!
Katrinaquerida is offline  
#9 of 15 Old 03-03-2012, 07:34 AM
 
SweetSilver's Avatar
 
Join Date: Apr 2011
Location: Westfarthing
Posts: 5,165
Mentioned: 5 Post(s)
Tagged: 0 Thread(s)
Quoted: 74 Post(s)

If you got the credit card from your own bank, could you have a meeting with them to discuss your new predicament?  Do you have more than one credit card that could be consolidated?  Banks can be surprisingly good resources for this kind of crisis.  They can also help you will planning your mortgage payments, if you anticipate coming up short.

 

One place most people don't look for saving money is at their home and car insurance.  Review your policies.  Make sure that your home is insured for the proper amount (ours usually starts getting a bit beyond reality every 5 years or so), get rid of any frills that cost extra, and make sure the deductible is as high as you dare ($1000-$1500 is as high as we want to go.)  For car insurance, make sure that the insurance fits the vehicle.  Perhaps the car is now 15yo and the full replacement policy just doesn't make sense.  For example:  if your car would only be Blue Booked at $2000 now (compared to the $10,000 when you bought it almost new) it probably is not worth the extra premiums.  Also, my dh uses his truck for his work and that is insured as a 100% business rate, a bit lower.  Again, make sure the deductible is as high as is practical.  You can also check the deductible on your health insurance, if that is adjustable.

 

The nice thing about looking to reviewing these policies is that as soon as you set it straight, you get a refund check.  

 

 

 


"Let me see you stripped down to the bone. Let me hear you speaking just for me."
SweetSilver is offline  
#10 of 15 Old 03-03-2012, 12:26 PM
 
Ruthiegirl's Avatar
 
Join Date: Jun 2004
Location: Feet in the mud, head in the clouds
Posts: 3,646
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 14 Post(s)


Quote:
Originally Posted by SweetSilver View Post

 

 

One place most people don't look for saving money is at their home and car insurance.  Review your policies.   

 

 

 



This is great advice.  We just did this last month and now our car insurance is $40/month less and our home owners insurance is $50/month less.  $1080 a year in savings!  

Katrinaquerida likes this.

Frugal, food growing mama to my four loves

Ruthiegirl is online now  
#11 of 15 Old 03-06-2012, 04:28 AM
 
umarider's Avatar
 
Join Date: Jan 2008
Location: Somewhere with seasons
Posts: 201
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)

Try to start networking for a new job either in your own district or another one if possible.  Where I live, teachers still have time to give their notice about leaving, so things are still up in the air about what jobs will be opening up.  Meanwhile, we offer a program for students called AVID.  The program uses tutors and it's budget in our district is separate from normal school costs.  Tutoring is only a part time job, but if you need $, being either a private tutor or working for a program like AVID or doing tutoring in a Title I school might bring in some extra $.  In the meantime, see if you can pick up some afterschool tutoring if possible (I know teachers already work long hours).

 

Getting notice about a layoff is lousy, but at least you have the warning and time to make some changes.  The district next to ours hands out layoff notices as a way to pressure the county into handing out more $.  This means that teachers are given actual layoff notices that are all part of a game of chicken the school board plays w/ the county.  Then the budget gets done and they see how many of the pink-slipped teachers are actually going to lose their jobs.  I don't think I'd be a very good teacher w/ that threat over my head each budget year.

umarider is offline  
#12 of 15 Old 03-06-2012, 07:11 AM
 
SweetSilver's Avatar
 
Join Date: Apr 2011
Location: Westfarthing
Posts: 5,165
Mentioned: 5 Post(s)
Tagged: 0 Thread(s)
Quoted: 74 Post(s)


Quote:
Originally Posted by umarider View Post

 

Getting notice about a layoff is lousy, but at least you have the warning and time to make some changes.  The district next to ours hands out layoff notices as a way to pressure the county into handing out more $.  This means that teachers are given actual layoff notices that are all part of a game of chicken the school board plays w/ the county.  Then the budget gets done and they see how many of the pink-slipped teachers are actually going to lose their jobs.  I don't think I'd be a very good teacher w/ that threat over my head each budget year.


This happened to my sister here in WA.  She was pink-slipped (as a rookie teacher) for budgetary reasons.  By mid-summer, however, the district knows how many students will be enrolling and makes the real cuts.  She still had her job in the fall.  Torture, surely.

 


"Let me see you stripped down to the bone. Let me hear you speaking just for me."
SweetSilver is offline  
#13 of 15 Old 03-07-2012, 09:16 AM
 
mnnice's Avatar
 
Join Date: Apr 2003
Posts: 2,201
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)


Quote:
Originally Posted by umarider View Post

Try to start networking for a new job either in your own district or another one if possible.  Where I live, teachers still have time to give their notice about leaving, so things are still up in the air about what jobs will be opening up.  Meanwhile, we offer a program for students called AVID.  The program uses tutors and it's budget in our district is separate from normal school costs.  Tutoring is only a part time job, but if you need $, being either a private tutor or working for a program like AVID or doing tutoring in a Title I school might bring in some extra $.  In the meantime, see if you can pick up some afterschool tutoring if possible (I know teachers already work long hours).

 

Getting notice about a layoff is lousy, but at least you have the warning and time to make some changes.  The district next to ours hands out layoff notices as a way to pressure the county into handing out more $.  This means that teachers are given actual layoff notices that are all part of a game of chicken the school board plays w/ the county.  Then the budget gets done and they see how many of the pink-slipped teachers are actually going to lose their jobs.  I don't think I'd be a very good teacher w/ that threat over my head each budget year.


Additionally, you should be eligible for unemployment.  If you get a new job either in you current district or elsewhere before school starts you could actually end up with more money (pay for 2011-2012 school year plus unemployment for 10 weeks or so over the summer.)
 

 

mnnice is offline  
#14 of 15 Old 03-07-2012, 12:20 PM
 
mar123's Avatar
 
Join Date: Apr 2008
Posts: 582
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)

If her paychecks are spread out over 12 months (I know in some areas, you have a choice-here, you don't), she cannot collect unemployment until after her last paycheck. When you file for unemployment, they actually ask this. Also, even if she is paid out over 10 months, the school board may fight it if her contract was for 12. It all depends on how it is handled.

mar123 is offline  
#15 of 15 Old 03-16-2012, 06:01 PM - Thread Starter
 
Katrinaquerida's Avatar
 
Join Date: Mar 2008
Location: Western New York
Posts: 131
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)

Well, we made some cuts (house phone, internet) and are working on others (insurance). As you all suspected/predicted the cuts are not in stone and anything could happen between now and September. Yesterday they told me that I will most likely be 1/2 time, which in someways is good, but in others more difficult. I guess I am going to hang tight, keep my eyes open and wallet closed and see what happens! Ick.


Check out my new blog naturalfamilysteading.blogspot.com!
Katrinaquerida is offline  
Reply

Tags
Finances

Quick Reply
Message:
Drag and Drop File Upload
Drag files here to attach!
Upload Progress: 0
Options

Register Now

In order to be able to post messages on the Mothering Forums forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
User Name:
If you do not want to register, fill this field only and the name will be used as user name for your post.
Password
Please enter a password for your user account. Note that passwords are case-sensitive.
Password:
Confirm Password:
Email Address
Please enter a valid email address for yourself.
Email Address:

Log-in

Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.



User Tag List

Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page


Forum Jump: 

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off