ways to stretch your resources until you land steady work
- From: Chim <ChimS1@xxxxxxx>
- Date: Sun, 21 Sep 2008 15:46:27 -0700 (PDT)
Jobless? Tips for survival
Here are ways to stretch your resources until you land steady work.
By Tiffany Hsu, Los Angeles Times Staff Writer
September 21, 2008
Abby Winger learned at least one thing during the more than a year she
was out of work: how to live cheaply.
After being laid off from a home loan processing position, the 37-year-
old Chatsworth resident scrimped to stretch her unemployment checks
and severance pay as far as she could.
Now working in a temporary position, Winger points with pride to the
time she used coupons and her store discount card to push a $99
grocery bill down to $65.
"You can't do the normal things that you would take advantage of if
you were working, like going to the movies or going to get a haircut
as much or even just going out to eat," Winger said of her time in the
ranks of the unemployed.
It's never fun losing your job, but it's worse in an economic
downturn, when more people are fighting for fewer positions. And it's
especially tough in California, which is tied with Mississippi for the
third-highest jobless rate in the nation. Unemployment rose sharply to
7.7% in August, California officials said Friday, up from 5.5% a year
ago.
Experts say there are ways to soften the blow of a long layoff --
including acting early and decisively to cut expenses. The newly
unemployed should also communicate with creditors, landlords and
others owed money; you don't want to be driven deeper into debt with
fees for late and missed payments.
"It can be a shattering, debilitating experience, but you have to take
stock of things and realize it's not the end of the world," said Chris
Marston, who counsels laid-off union members as community services
coordinator for the AFL-CIO.
If you're mired in long-term unemployment, here are some steps that
Marston and others say can help you ride it out.
Be frugal
Prudent money management is key. Resist dipping into retirement
savings, experts caution, because those withdrawals carry high tax
rates and 10% federal penalties.
You also don't want to rack up credit card debt -- that carries high
interest rates and makes it harder for you to dig yourself out of the
rut once you find work again.
"The better idea is to circle your wagons and make drastic financial
cuts," said Gail Cunningham, a spokeswoman for the National Foundation
for Credit Counseling.
Jessica Hodgdon, 24, was out of work recently for six months. To save
money, she moved into the East Los Angeles apartment of a friend, who
waived rent in exchange for Hodgdon's help cooking and cleaning.
Instead of going out with friends, she had them over for dinner. And
to get healthcare coverage, she enrolled at Pasadena City College so
she could hop back onto her father's Kaiser health plan. If that's not
an option, look for low-cost or free health clinics.
"I just didn't spend any money during that period," said Hodgdon, who
now works as a technical writer for Banker's Toolbox in North
Hollywood. "I don't know how I could have survived otherwise."
Four years of on-and-off employment put a damper on Frank Wesley's
style. After Wesley, 50, left a janitorial position, and before he was
hired by the Metropolitan Transportation Authority, he said, he even
abandoned his favorite Levi's 501 jeans for cheaper stonewashed
styles.
Other ways to buffer your budget:
* Cutting back on insurance for your car or home.
* Switching to generic prescriptions.
* Eliminating or downsizing your cable TV, Internet and cellphone
service.
* Eating at home, and shopping for discounts.
"Leftovers are also great -- I have barbecued chicken today, and
tomorrow it's in my enchiladas and then it's in a chicken salad," said
Marguerite Womack, director of economic and workforce development for
United Way of Greater Los Angeles.
Talk to your creditors
It's good to let creditors know of your situation -- it could help
avoid a ding to your credit rating, which could stick around as an
unhappy reminder of your tough times long after you rejoin the working
world, said Andrew Stettner, deputy director of the National
Employment Law Project.
Can't pay the full amount? Landlords, insurance agencies and credit
card companies can be willing to negotiate, so ask to delay or lower
payments, or pay only the interest until you score a job.
To keep collection agencies at bay, send a portion of the bill
regularly and pay off high-interest credit cards first or transfer the
balance to a low-interest card.
There's no foolproof plan. Winger said she tried to negotiate with her
landlord, who refused to budge on the $990-a-month rent for her studio
apartment. But she had better luck with Toyota Financial Services,
which had issued the loan on her 2004 Tacoma truck. The company gave
her an additional two months to send in her next check.
"I called and said I was in big trouble, and they said they'd help
because I'd been a great customer for four years," she said.
Justin Leach, a spokesman for Toyota Financial Services, said
borrowers should always check to see whether their lender can be
flexible.
"It's not that they'll write everything off, but work with your
creditors, because it's also in their interest to work with you," he
said.
Think as creatively as you can, experts said. If moving to a cheaper
apartment isn't an option, for example, consider asking your landlord
whether you can pay all or part of your bill by doing repairs or
maintenance work.
Try the safety net
Public and private agencies offer a range of services to those who are
unemployed or low-income, so don't be afraid to take advantage of
them.
The federal government has a smorgasbord of options, including
Temporary Assistance for Needy Families, which provides state and
federal assistance to low-income families with children.
The U.S. Department of Agriculture's Food and Nutrition Service
administers several food assistance programs, including food stamps
and food distribution, the Women, Infants and Children program and
school meals.
There's also help with energy bills through the Low Income Home Energy
Assistance Program, funded by the U.S. Department of Health and Human
Services and implemented at the state level.
Church groups and charitable organizations are another option. United
Way, for example, partners with Los Angeles Neighborhood Housing
Services to help prevent foreclosure and pay back loans.
Low-income households should also apply for the federal earned income
tax credit, which will refund up to $4,824 for the 2008 tax year. You
can claim the refund for up to three years after each filing date.
Take temporary work
If your joblessness drags on, try broadening your job search. Any
income is better than no income; better to take temporary work or a
job outside your specialty than be forced to dip into your savings or
tap your credit card.
"Sometimes, you just have to drop your standards down a bit and take
the best job available," Stettner said.
Hodgdon she looked for work in museums, where she had some previous
experience. She wound up taking a part-time position as a guard at a
Pasadena museum. She didn't like the work, but it helped pay the
bills.
Winger said she also reset her career sights after she was unable to
find work in the home loan or medical billing fields, despite filling
out countless job applications and making trips to local career
centers. She recently started a temporary position doing data entry
for a Moorpark company.
"Nothing exciting, just a paycheck," she said. "But there's just not
enough work to go around."
tiffany.hsu@xxxxxxxxxxx
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