Bridgforth Financial: What to do if... Six Common Crises and How to Deal with Them

What to Do If...

You're laid off/unemployed

What to Do If... Six Common Crises and How to Handle Them

by Glinda Bridgforth, published in Essence Magazine, February 2005

Learn whether you're eligible for unemployment insurance. Visit the Department of Labor website, www.dol.gov
Be sure to collect every dollar due to you: severance pay, vacation and sick pay, retirement, expense account and mileage reimbursement.
Don't settle, but don't be too selective about choosing work. Even if a certain job is not your cup of tea, look for ways to make it work, as opposed to reasons why you don't want to do it. Be open to temporary employment while you plan a more permanent move.
Keep your resume updated. Include any skills acquired from volunteer work, activities at your house of worship, or community and PTA involvement.
If you're thinking of switching fields, convene a focus group with 5 to 10 friends who work in different industries. Ask for their feedback on identifying your strengths and weaknesses. Once clear on the type of work that interests you, ask them for names and phone numbers of people you can conduct informational interviews with, perhaps over coffee. Don't be afraid to ask these contacts, "Who do you know who might assist me in this job search?" Also, use this opportunity to hone your interview skills.
Your next employer could be you. Don't dismiss your business or invention ideas. Use this time to do research, business plans, and patent investigation.

Contact your lender and seek a deferment (postponement of loan payments for a specified period of time). Or seek forbearance (suspension or reduced payments under certain circumstances for a specified period usually granted in one-year increments). Under this plan you have the option of paying the accrued interest.
Visit www.salliemae.com/manage/difficulty.html for options on federally guaranteed loans including dealing with problems making payments.
Investigate options for "loan cancellation" – forgiveness of the loan for those who practice certain careers. In some instances, full-time nurses, medical technicians as well as teachers in designated teacher shortage areas, or those teaching in certain schools serving low-income students qualify.
If you're continuing your education, avoid future reliance on loans as much as possible. Apply early for grants and scholarships, and compare the cost of the educational expense to the eventual income range for the career.
For more ideas, check out the book, Take Control of Your Student Loan Debt, by Robin Leonard and Deanne Loonin (NOLO).

Don't have a knee-jerk reaction and charge a large auto repair expense on your American Express card that must be paid in full the following month.
Don't immediately purchase a new vehicle even if it has zero percent financing or a no-money-down option. Also, don't agree to a high interest rate loan because your credit is bad.
Consider renting a car for a week, if necessary, until ample research of options can made.
Take the bus or public transportation. Carpool with coworkers or neighbors who work in close proximity to you. Barter with friends, neighbors, or coworkers for rides. In exchange for transportation, offer to baby-sit or to accompany an aging parent.
Suggest flex-time options with your employer to enable ample time to get to work. If you can, work from home a couple of days a week and reduce the need for transportation alternative.

Contact the local utility company to make payment arrangements for large bills. In some cases a down payment may be required before a bill can be divided over a number of months, and you must stay current on future bills.
If you have a large bill and are considered a low-income customer, you may qualify for a number of special programs. Check the brochures included in your monthly billing statements.
Inquire with your gas and electric company about budgeting programs where the annual bill is averaged over twelve-month period, thus avoiding extremely large heating bills during winter months and cooling bills during the summer.
Contact your local Social Services Agency, Salvation Army (800) SAL-ARMY, your local church, United Way or Society of St. Vincent de Paul for budget or emergency assistance programs.

Communicate promptly with creditors or the collection agency handling the account. Ask them to work with you on finding a fair solution to the problem.
Ask for a supervisor who will likely have more authority than a customer service representative.
Attend three different Debtor Anonymous meetings to find a group that you feel comfortable working with. Then schedule a Pressure Relief session for help in creating a debt repayment plan.
Call the National Foundation for Credit Counseling (800) 388-2227 and schedule an appointment at an office near you. Have the counselors assess your situation and work out a long-term financial plan.
Make a settlement offer on long-overdue debts. Some companies will accept 50 percent of the outstanding balance to get the account off the books.

Open your mail and keep track of your paperwork. Know when you should be billed directly and when insurance companies should be billed first. Sometimes there is a statue of limitations on how long insurance companies will pay, so don't miss your window of opportunity.
Request a payment arrangement if the balance owing is more than you can handle in one payment. Suggest a 3-month or 6-month arrangement. If the bill is especially large, you may be request to make a financial disclosure (provide tax return, pay stub and savings balance) to determine an appropriate payment.
Communicate your financial status with the hospital administration or your physician's office. You can prevent collection and/or lawsuits by sincerely trying to work out a payment arrangement and make that payment on time, as agreed.
To find resources, ask questions of doctors, nurses, social workers, and your local United Way. There are many private organizations and foundations with funds to assist those in medical need.